If you've done any research on the subject, you know there's a lot of hype surrounding credit repair. Can these companies really fix your credit report? Do the strategies and tactics they employ really work? If you are looking for answers to these questions and more, you have found the right article. In the next few paragraphs, I'll give you the facts and fiction about credit repair agencies.
So what is credit repair? Credit repair is the process of fixing your credit report through a series of disputes with credit reporting agencies. If there are inaccuracies on a persons credit records or even old accounts that should have been removed after a certain period of time, these entries can generally be removed by simply disputing the item with the credit reporting agency. Although the process seems fairly straightforward, there are some ins and outs to credit repair that all consumers should know before taking this route to fix their credit reports.
Fact # 1 – Old accounts and inaccuracies can be removed.
You can remove old accounts and inaccurate information that may be affecting your credit score from your credit records. Credit reporting agencies have guidelines and federal laws they are obligated to follow. If you have found an item on your credit report that you are sure is inaccurate, you can dispute this item with the credit reporting agency and have it removed.
Fact # 2 – Some creditors on your report may be reporting illegally .
It seems far-fetched, but it is true. Creditors, just like credit reporting agencies, have guidelines and laws they are obligated to follow when reporting to a person's credit file. For example, if you have a judgment against you, possibly from a small claims court lawsuit or something similar, and were not served with notice of the lawsuit you stand a good chance to get that judgment reversed in court. These errors in procedure and reporting do in fact take place, so don't hesitate to question them.
Fiction # 1 – A credit repair company can make legitimate items magically disappear.
No agency, no matter how skilled or seasoned in the credit repair field, can remove a legitimate debt from your credit report. If the debt is valid and the creditor has followed all legal guidelines, the record is there to stay until it is either paid or the creditor stops reporting it.
Fiction # 2 – Credit repair agencies have "inside contacts" that can push a button and raise your score.
Although it would be nice to have direct contact with the person charged with manning the credit score "magic button", unfortunately it just doesn't work like that. A person's credit score is calculated by a mathematical formula automatically, and is not manually assigned to individual consumers. To say that it can be altered by simply making a phone call to a secret contact is just ludicrous.
It is important to know that there are legitimate credit repair agencies out there. If you want to fix your credit report, these agencies can provide you with a great service. But be wary of over-the-top claims and hyped up advertisements. If you are serious and want to fix your credit report, be sure you are dealing with a reputable company who has proven results in the field of credit repair.