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    How Does Credit Repair Work?

How Does Credit Repair Work?

1 May 13, 2013 in Credit Repair Basics by admin
If you've ever been denied for anything because of your bad credit, then you know how important it is to have a high score. Whether you were looking to get a Target credit card or a car loan, getting denied is never a good feeling, and many people don't realize the importance of having good credit until it's too late. So, you have poor credit and you're looking for a way to fix it. You have put an effort forth to pay your bills on time and to not spend above your means. But your score is going anywhere; it's still not high enough to get approved. No, giving up is not the only option available to you. You can improve your credit score quickly and effectively through a simple process that we like to refer to as "credit repair."

Yes, it is exactly what it sounds like: a method of repairing one's credit. Let me guess: your next question is "how does it work?" Most credit repair companies boast a simple three-step credit repair process. It may sound simple, but the process of repairing credit is actually fairly complex. It is important to know what to expect before joining a credit repair program, so I am going to walk you through the process that you will most likely experience.

how-credit-repair-worksYou will choose one of the top credit repair companies that we have recommended on our site. You will then sign up for their program through their website.

how-does-credit-repair-workWithin a couple of days, you will receive a call in which a customer service rep will welcome you into the service. They will then request that you pull your credit report and send it to them. Why do you have to pull it yourself? Because if anyone else pulls your report, it may negatively affect your score. And that's just counterproductive.

the-credit-repair-processThe credit repair experts will intensively review your report. Picture someone peering through a microscope at your credit report. What are they looking for? Errors. Anything from a misspelling of your name to an account that does not belong to you.

how-the-credit-repair-process-worksThis is where all the fun starts. After detecting all of the errors and disputable items on your credit report, the credit repair company will then dispute these items with the credit reporting agencies. Why would the credit reporting agencies have any obligation to answer the letters? Four words: Fair Credit Reporting Act. In this act, it is mandated that all disputes received by the credit reporting agencies must be answered and resolved. There are two outcomes, then, of these disputes: either the credit reporting agencies will prove their case with documented evidence, or they will have to remove the negative items from your report. More times than not, the latter outcome takes place.

how_does_credit_repair_workWithin 30 days of sending out the letters, you will receive responses in the main from the credit reporting agencies that most likely inform you of your removed items. And in the world of credit, negative items being removed equals a higher credit score. In no time, you will notice an improvement in your credit score and a much cleaner credit report.

When it comes to your personal finances, repairing our credit is probably the most beneficial initiative that you can take. From lower interest rates to a higher likelihood of approval, raising your credit score is smart, no matter what way you look at it. Check out our complete guide to the top credit repair companies to decide on which company to hire to repair your credit. Do yourself and your wallet a favor; repair your credit!
Last Modified: May 22, 2013
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