Many people ask about credit repair as they don’t have a proper idea regarding the term. Often credit score is negatively impacted with some mistakes that one makes. Some of the most common errors are missing payments, maxing out on credit cards, taking a bill to go to collections.
There are many times when one tends to overextend oneself as well. These mistakes take a toll on the credit score of a person and the credit report is not very healthy. What to do in such a situation? Well, there are affordable credit solutions offered by various companies and agencies which are of great help.
Understanding credit repair clearly
Generally, when we talk of credit repair, we hear other related terms like debt consolidation or debt management, etc. Credit repair includes the removal of outdated or inaccurate information from credit reports. It is quite possible that such information is negatively impacting the credit score.
People often show interest in credit repair to bring back their credit report to a healthy state. It might happen that they are intending to take a loan or looking for mortgage etc. In such cases, having a healthy credit score is mandatory. Again there are people who just try to better their financial condition and monetary health with credit repair.
The process of credit repair can be done on one’s own or a company can be hired offering affordable credit solutions. Before you take any step or choose any option, it is recommended to know these key facts about credit repair.
3 key facts that one must know about credit repair
1. Credit repair could be done on one’s own
Though there are companies and agencies which offer credit repair services, you can always do the work on your own. It is true that doing the job on one’s own will take quite a long for bringing results and you will have to put in lots of effort as well. It will be a free process.
First and foremost, request your credit reports from agencies. Start reviewing the report for headings that are inaccurate or old. You might find innumerable listings for the same thing, hard inquiries which were done without your permission, late payments which were actually done timely, collections that have been resolved, and accounts that have been closed already.
The credit bureau has to be contacted in case there is a dispute against which you want to fight. You have to file your dispute by writing to them in detail. This could be done through certified mail or online. The investigation will be done on the matter and the result will be informed to you in writing by the bureau.
2. Credit repair is related to credit report and not credit score
Repairing credit is actually working towards improving the available information on the credit report. This is the main thing, which is actually influences – whether there is good credit or bad credit. It is interesting to know that this is the main basis of the credit score. You should check your credit report when you are planning to go for credit repairs. The credit report is available from all leading credit bureaus. Agencies offering affordable credit solutions can also help.
3. Even with credit repair, a great credit score is not guaranteed
During this repairing process, inaccurate information will be removed from your credit card account. It is not about debt settlement or rewriting credit history. If there is accuracy in the negative information of the credit report, very little can be done with credit repairs. The credit score will moderately improve with credit repair. An average of 5-10 points might increase in credit score with the removal of each hard inquiry.
If you are endowing responsibility on an agency, find one which offers affordable credit solutions with quality work.
Lastly, I am concluding that repairing your credit is not a big deal nowadays. You can increase it with some recommendations easily. Don’t worry about your credit score. There are a lot of credit repair agencies around who can help you by offering affordable credit solutions.