When it's time to fix your credit score, there are two options: you can spend the time to learn the requisite aspects of the credit reporting business, or you can utilize a professional credit repair service. There are benefits to taking either path.
Option one is repairing your own credit. The big benefit of repairing your own credit is that the financial cost is minimal. Most people find the credit repair process daunting and confusing, but once you understand how it all works, it is certainly possible to go it alone. One thing to keep in mind is that fixing your credit score on your own will probably be a time consuming undertaking.
The first step of the process is obtaining your reports from the three primary credit bureaus; Experian, Trans Union, and Equifax. You will notice right away that the reports do not match; That's because each company has their own set of reporting standards. This is why it is critical to obtain credit reports from all three of the bureaus. Review and compare the three reports, and make a list of all the inaccurate items.
The next step is to write letters to each of the credit bureaus to dispute each of the erroneous entries. Note that you need to write a separate letter for each specific item that you are disputing to each bureau that lists that particular account.
Within a month you should receive a letter back from the applicable credit bureau with a disposition for your dispute. Follow up with each applicable bureau until all of the erroneous data has been corrected.
Option two is to utilize a professional credit repair company to help you fix your credit score. Credit repair companies can help you fix your credit score fast because they have an intimate knowledge of exactly what actions influence credit score and by how many points.
A good credit repair company also has direct contacts that they deal with regularly at the credit bureaus which is definitely going to quicken the pace of the action. Depending on your circumstances, it is possible to increase your credit score as much as 200 points in a matter of weeks. The downside is that you have to pay them for their service.
The bottom line is that whether you choose to hire a credit repair company, or you decide to go it alone depends on if you would rather spend the time to do it yourself or spend the money to hire an expert … just like most things in life.