You may have had a bad time financially in the past and struggled to make credit payments. Now your credit history is less than stellar. That doesn't mean that you can't get future credit. There is help available.
Credit repair companies are businesses that help repair your credit. They do this by looking at your credit report to spot inaccuracies. They then contact the appropriate companies and credit agencies to fix the mistakes.
Let's run through how a credit repair agency works. Also, we let you know how long it takes to repair your credit.
How do credit repair agencies work?
The process of repairing your credit can vary from one agency to the next. However, the first step that all credit repair companies do is request a copy of your credit report. This request is made to credit organizations such as TransUnion, or Equifax.
The credit repair agency then looks at your report to identify errors such as:
● Suspicious accounts
● Accounts appearing twice
● Wrong credit queries
● Accounts that contain incorrect information
When items such as these are spotted on your credit report, the credit repair agency can dispute the information. This is done by asking the appropriate creditors to look at the inaccurate information and either correct it or remove it.
How much does a credit repair cost?
The cost of having a credit repair can differ from one agency to the next. Some will charge a flat rate. Others will have a fee for each disputed item, whilst another agency may ask for a monthly fee.
One thing to be aware of is: credit repair companies should never ask for money upfront. They will only ask for payment once the service is delivered. Unscrupulous credit repair agencies will ask for you to pay first.
How long does a credit repair take?
When disputes are made with the credit bureaus (i.e. TransUnion, Equifax, etc.) they are required to rectify any discrepancies within 30 days. However, this time frame can be shorter if you have only a few inaccuracies on your credit report. Obviously more complex discrepancies can take more time to dispute and resolve.
You can do your own credit repair
It is possible to repair your credit record by yourself. However, you do need to understand how to identify mistakes on the record. After that, you need to correspond with the credit agencies about any errors you spot.
The good thing about using a credit repair agency is that they are experts. They can easily find things that you may miss. Time is another factor to consider. If you’re busy, then you may have little time to communicate with the credit bureaus. Credit repair agencies are your proxy and they have the time and resources to help you.
Credit repair companies help you find mistakes on your credit record. Without identifying these errors you will find that it’s harder to obtain credit at reasonable rates. Once the errors are found, the credit repair company contacts the credit bureaus to correct or remove the information.
You can do this yourself, but perhaps you don’t have the time or knowledge.