Your credit history fluctuates. This means that it’s within your power to make it better or worse. When your credit score is on the low side, financial institutions are likely to charge you more to borrow money, which is why it’s worth the effort to fix your credit. While you can take steps to repair it yourself, the process is usually painstaking and time consuming, so you may want to consider hiring a specialist for aid and guidance.
Who Can Help Fix Credit Scores?
According to Credit.com, credit repair companies and law firms help everyday consumers improve their credit scores. They do this by finding and resolving reporting errors. Many of them provide budget and credit counseling. They can also guide you through liens, loan defaults and bankruptcies.
The process of credit reporting involves three specifications. The first is that credit bureaus are required to record your history with 100 percent accuracy. Your credit history must feature fair reporting, and it must be completely substantiated.
Tips for Locating Trustworthy Credit Repair Companies
Avoid companies and firms that promise results. It’s illegal for a repair agency or a law firm to make this type of claim. Instead, select one that explains your rights as a consumer. The company should also advise you that it’s acceptable and doable for you to repair your credit yourself. A credit repair company that’s in good standing will also want to know about your financial history and expectations.
How is Credit Repair Accomplished?
If you have an account that’s become past due enough to reach collections, then not only is this likely impacting your credit history negatively, but it could also be on your report multiple times. The reason for this is that collection accounts are notorious for winding up in the hands of several companies. When this happens, the same delinquent account causes negative history from different financial institutions. If one debt affects your credit score more than once, then the situation could give your credit repair company grounds for dispute.
When you use a reputable credit repair company, the agency should pull a credit report for you from each of the three major credit bureaus. They will do this to pinpoint the cause of the poor credit score. These agencies access reports from all three credit bureaus because each one receives information from its own set of debt collectors, lenders and credit card companies. Because of this, there may be an error on one credit report that doesn’t show up on the others.
Once the credit repair company has determined an error, a specialist assigned to you will ask for supporting information that proves it. For instance, if a bill that belongs to an ex-spouse is showing delinquent on your account, then you can use your divorce decree to show that you shouldn’t be held accountable for it.
The Do-It-Yourself Route
If you decide to take on the task of repairing your history personally, Credit Sesame advises everyday consumers to pull their credit reports to look for inaccurate balance information, data that’s out of date and unfamiliar collection accounts. Also, be sure to check for any judgments or liens that are against you as well as general errors like being mistaken for another individual. People who have the same or a similar name frequently experience this type of error.
Credit Scores are Fixable
To improve your credit, be sure to keep your credit card balances low. Also, pay off debt instead of shifting it around. Keep your current credit card accounts open, but avoid opening new ones that you don’t need. Your credit score is fixable with the help of a reputable credit repair company or your own legwork.