What is Credit Repair?
Credit Repair is the term that involves fixing your credit score. When you don’t pay your bills on time, you get something that is known as bad credit.
Having bad credit on your credit score sheet can prohibit you from numerous things that might be detrimental to your financial well being. Bad credit can influence your possible refinancing credit, car loan or home loan, and numerous other financing issues.
The process of credit repair is the process of disputing errors on credit reports. Credit report errors can cause bad credit, even if they are not deserved by the applicant. Mistakes happen.
Should I hire a Credit Repair Company?
You can go through the whole dispute process for free through the credit bureau on your own. This process is done by opening a formal dispute, in which you answer all questions and provide all the necessary details, sending it through either email or post, and disputing the issue.
Disputing credit errors can be pretty intimidating. It is a process that can influence your credit score. Disputing an actual bad credit without credit errors can further damage your credit score.
Your credit score issues don’t have to be error related, as you can be a victim of numerous different crimes. Identity theft, card theft, or other issues are all different reasons that your credit score can worsen. Some of these issues can be especially hard to deal with.
Hiring a credit repair company to dispute your credit errors for you can save you quite a lot of time and provide for a quick, cheap, stress-free solution to credit disputes and bad credits.
Why Does Credit Repair Matter?
Having good credit has numerous different qualities that can substantially improve your everyday life.
With a good credit score, you can reap the benefits of:
- Mortgage Loans
- Refinancing Credit
- Car Loans
- House Loans
All of these benefits are going to be unavailable to you if you have a bad credit score. It can be a huge obstacle to getting any of these. Now, bad credit does not legally prohibit you from getting any of these. It just makes the process much more unlikely.
Another problem of bad credit is simply that numerous loan companies, insurers, and employers check your credit score. To put it into simple terms, your credit score is your responsibility rep sheet.
Lenders will refuse to loan you any finances if your credit score shows that you have not paid your bills on time. Bad credit can also strongly impact your insurance, as your premium is sure to rise each month with your bad credit.
Even employers check your credit score when you are applying for a job, as your credit score represents your reputability and your reliability. You need a good credit score in order to lead a good life. This is why it is extremely important to improve your credit score if you have bad credit, and it is integral that you improve it as quickly as possible.
What Ruins a Credit Score?
As stated above, there are numerous different reasons why your credit score can go down. Your credit score quality is directly related to your overall quality of life, so it is integral to know what you are doing to affect your credit score.
Things that affect your credit score are:
- Overdue Credit Payments. If you have a habit of paying your credit late, you’re going to find your credit score going down. Paying all of your bills on time is integral to improving and maintaining a clean, good credit score.
- Amount Of Debt. If you have accumulated a lot of debt, it does not necessarily mean that your credit score is bad. If you keep accumulating debt while paying off another debt, and the overall rendition is negative, your credit score goes down. More debt – worse credit score.
- Amount Of Credit. Depending on the amount of credit you have taken out from your loan, your credit score is either going to improve or worsen. Higher credits are valued differently than lower ones and increase your risk of creating debt.
- Credit History. This is what makes your credit score rep sheet. If you have been paying credit for only a month and have already processed a late payment, it is going to be valued differently than if you’re late one month out of thirty, all of which have been paid on time.
- Credit Error. One of the biggest reasons why your credit score could be going down without your intervention is a credit score error. A study found that one in five people have an error on at least one of their credit reports. This can worsen your credit substantially, while not being your fault.
How do Credit Repair Companies Work?
Credit repair companies work to improve your credit by viewing and pinpointing the errors in your credit report. It is reported by each of the 3 major credit bureaus. Each of these three major credit bureaus has its own index of lenders, credit card companies, debt collectors, and others.
All of these reports have their respective credit scores in one of these three bureaus. All of them can cause errors in your credit reports, which can further decrease your credit score, rendering it bad. The credit repair company works to resolve these errors in order to improve your credit score.
If your credit score is bad and you’re not sure why you could be facing quite a lot of errors, that can be a bureaucratic nightmare to correct.
A credit repair company works to review your credit report thoroughly and improve any errors that might be found in it.
These errors can be solved via filing a formal complaint, which the credit repair company does for you. You’re required to submit all of the required documentation that the company asks for.
When a credit company has submitted your documentation with a formal complaint, the bureaus work with the credit repair company to determine if the error is, in fact, an error. They later work to remove it from your credit report, thus not only improving your credit score but removing the error entirely from the rep sheet.
The Fair Credit Reporting Act is a major law that governs your rights when it comes to credit reporting and can be a breaking point that the credit repair companies use to improve your credit. All of this expertise is not known by everyone and is best left to professionals, as they can improve the speed and possibility of repairing your bad credit.
There are numerous laws in the USA that help the credit repair process, and in turn, the credit repair company works to improve your credit score. The Fair Credit Billing Act and the Fair Debt Collection Practises Act are both detrimental to improving your credit score.
Are Credit Repair Companies Expensive?
The price that the credit repair company will charge you for improving your credit score depends on a wide variety of factors.
Some of these factors are:
- The State You Live In. The credit repair companies work not only by major laws, acts, and regulations, but also must abide by local laws and regulations. This is why the price of their services varies depending on your location.
- The Amount of Credit. Depending on the size of your credit sheet and the number of errors you may or may not have, the time that the credit companies work to improve your credit score varies. This is why the size of your credit score and sheet can strongly impact the price you’re going to be charged.
- Type of Service. Depending on the type of service you want to solicit from a credit repair company, you will be charged accordingly. If you only have a couple of errors to resolve, you can rest assured you’re not going to be paying much. If you leave your bureaucratic nightmare to your credit repair company, you’re going to be paying more.
- The Company Itself. There are numerous different credit card companies, and since there is no global price index of how much they should charge for each service, each company has varying costs.
Credit repair companies are far cheaper than having bad credit. Maintaining a good credit score is detrimental to leading a good life. So, a one-time payment is far more favorable, as opposed to a decrease in quality of life.
The credit repair companies are also prohibited from charging you upfront, so you’re only paying for services that have been committed.
How Long Does The Credit Repair Process Take?
Getting a bad credit score does not happen overnight, so the process of improving it does not work overnight, either.
Even if you can ruin your credit score over a period of years, resolving it is not really a long process. The credit bureaus have to respond and attempt to resolve a dispute within a 30-day window, and your credit score will improve accordingly.
Now, resolving things that are not simple errors in your credit sheet can take some more time than 30 days. The amount of time that it is going to take to improve your credit score really depends on the complexity of your credit sheet.
The maximum time that your credit score has before improvement is a period of 45 days, which is a short timeline.
This is instrumental if your current bad credit score is prohibiting you from committing to a house loan, mortgage loan, payment, employment, or any other variety of factors.
Every case that is submitted to a credit repair company is unique, taking up a different amount of time. The overall maximum time of the credit repair process is not long. You can rest assured knowing that professionals are doing their best to improve your credit score. Get Your Credit Repaired, now!
Credit Repair Offers Recap
Credit Repair Frequently Asked Questions
Yes, you can damage your excellent credit score. Unfortunately, damaging your credit score is much easier than improving it, so you’ll always want to be careful with how you use your credit cards and other types of loans.
Your credit activity will be reported to all three of the major credit bureaus, and most lenders and credit card issuers are fast to report negative behavior. Stay responsible, pay off your debts, don’t carry a balance, don’t max out your cards.
In theory, absolutely. There is nothing stopping you from attempting to repair your credit score yourself, and the process is advised if you only have a couple of simple errors to resolve. If you have a complex problem that might require expertise and legal advising, you should leave the process to professionals.
Having a bad credit score can negatively impact a number of your life qualities and prohibit you from applying and getting numerous detrimental things. For a one time payment, it is very worth it. Credit repair itself is not that expensive but can prove to be very beneficial in the long and short run.
The best credit repair company is one that works for you, and one that works to best suit your needs at a low price. Some good and reliable credit repair companies are:
- Lexington Law
- Sky Blue Credit Repair
- Credit Firm
- Ovation Credit Repair
- The Credit People
See a full list of available Credit Repair Offers here
As stated above, this heavily relies on the complexity of your problem. If you have a problem with your credit that is one or two simple errors, you can work to resolve them. Solving a complex problem by yourself can take up a lot of time, expertise, and effort, so it is best to leave it to professionals.