Credit repair is a process of working towards the improvement of credit scores and this can be done through the removal of some indicators that show the ability to pay.
It is crucial in your financial life, as it informs lenders about your credit history. It is used in all your loan and credit card applications for apartments and in some cases employment. That is why it is crucial to keep the credit score as high as possible and do everything to avoid the appearance of negative entries on credit reports. It is here that credit repair services come in handy.
Credit repair firms operate in your interest to find and challenge any information that is negative, unreliable, stale, and incomplete on your credit files.
Here are some of the most common items that credit repair services can help remove:
Late Payments
It has been established that one missed payment can cause a drop in your credit score by up to 110 points. This is even worse especially if they are many; this shows a pattern and is likely to lower your credit score. Credit repair services argue that late payments should not be reported by contacting the creditors and credit bureaus. They come with proof that payments were made on time or demand evidence that the payment was made late if you think the information is wrong. If the creditor is unable to substantiate the late payment then the particular item in the report has to be deleted.
Collections Accounts
If you have some unpaid debt that is required to be taken to collection, your credit score drops significantly. Credit repair assists in deleting collections through invalid debts that do not belong to you, debts that have been paid earlier, or debts that have an older age and therefore are not reported. Similar to the case of late payments, if the collection company has not been in a position to prove that the debt is genuine, then it must delete it from the credit reports. This can boost your credit score by a large margin as illustrated in the credit score chart above.
Inaccuracies and Errors
This ranges from an incorrect spelling of your name, and credit cards you never signed for, to accounts you did not open but are linked to your credit file and pull down your score. Credit repair services look through your reports from the three credit bureaus in an attempt to find any possible mistakes. Inauthentic information, accounts that are similar to the real one, fake transactions, or disputable accepted payments – credit bureaus are obliged to check and delete such entries.
Foreclosures and Bankruptcies
It also takes a very lengthy time; about 7-10 years to repair credit that has gone through foreclosure or bankruptcy. Credit repair ensures that there are no long-term repercussions by challenging any incorrect information in the public records of the foreclosure or bankruptcy filing. They also contact the creditors in negotiating to re-age your account to avoid adverse effects on your credit score.
Judgments
If someone took you to court for an unpaid debt and the court ruled in his favor, it would take many years even after paying it to repair your credit rating. Credit repair services help people remove paid or inaccurate judgments by producing documents that the judgment was paid or the record contained a mistake. If documentation is not available to substantiate the judgment, credit agencies are required to expunge it.
Tax Liens
Failure or omission to pay taxes due leads to conversion to liens resulting in reduced credit. Tax liens can be erased from credit reports by repairing the credit by providing proof that the tax liens have been paid off to the IRS or were erroneous. In case the credit information is wrong, it is the responsibility of the credit agency to remove it when investigating. This drives the effect of the lien on your credit reports to the positive side.
Hard Inquiries
If you apply for a new credit, the creditor pulls a credit report and this is considered as a hard inquiry. It is advisable not to have many hard inquiries over a short period because this shows that you are a high-risk customer and could have your score reduced. Credit repair services attempt to delete too many hard inquiries as irrelevant or disputed by fraud ones Credit repair services attempt to delete too many hard inquiries where they dispute the ones that are fraud. If they are out of the normal range that is acceptable with your credit report, then there is the possibility that the credit bureaus may delete them.
Offer a Money-Back Guarantee
Several legitimate credit repair services promise to refund the clients if they are not satisfied with the results of the service as the credit repair companies are unable to delete credit information that is accurate, timely, and verified. Some guarantee statements say that services will continue to work on the contested materials until they are taken out or you get your money back. However, to ensure that you are not caught off guard by certain stipulations, it is wise to read the guarantees the same way with particular regard to what the word “removed” means as well as any obligations on your side. For instance, they may demand you provide additional information or evidence for the arguments against within a specified timeframe for the guarantee to hold.
As mentioned above, credit repair services can delete all sorts of negative, unverified items from your credit reports with creditor bureaus required to erase false, inactive, or unreliable information. The same precautions are necessary but it is also important to ensure that the credit repair agency is reputable, all contracts presented are well understood, the credit repair process does not progress without the consumer’s consent, and any promises of miraculous results are avoided. Actions, that can be taken to correct the problem areas that decrease your score, can significantly increase credit over time.
Call now for expert credit repair services: (888) 803-7889
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