A poor credit score makes you struggle to fulfill even your basic financial goals like renting an apartment, getting a credit card, and even qualifying for a job. There are a whole lot of factors that can bring your score down like not making your payments on time, using too much of your credit limit, having a bad credit history, and many others on the list. Recovering from a bad FICO score is not as easy as it seams. You need to make some changes in your financial behavior and stick to them to regain your financial health. You can initiate your credit repair process yourself but don’t expect it to improve overnight as credit building takes time and a lot of effort too.
In order to keep your mind at ease from all the trouble involved in repairing the FICO score, you can hire the services of the credit repair agency. The credit repair company or agency is an organization that will help you to repair your score in return for a fee.
Hiring a credit repair company will help you to take out the inaccuracies from your credit report so that your score can be in the range of best credit score that will help you to lead a sound financial life.
To help you understand better how credit repair companies work, we are listing down the tasks that a legitimate company will process on your behalf:
- Request for your credit reports: The company will request a copy of your credit report from all the three main bureaus (Equifax, Experian, and Transunion) as it may not be necessary that all the reports contain the same errors. Once getting the reports in hand, they will start evaluating them to find inaccurate information.
- Disputing errors: After all the inaccuracies are identified, the company will start disputing them with all the bureaus so that the same can be removed from your credit report. You can provide the company with any document that supports the disputes. The errors may include:
- The accounts that do not belong to you.
- Any legal actions like bankruptcy or other that were not yours.
- Negative entries that belong to some other person having the same or similar name as yours.
- Wrong dates.
- Debts that should have removed from your report after the specified time.
- Unvalidated debts.
They will also follow up with the bureaus to ensure that necessary steps are being taken to remove the inaccuracies.
- Investing in more efforts: The credit bureaus take 30 days to review your report and, after that, will come up with one of the two responses: either they will remove the inaccuracies or disagree with your claim. In case they disagreed with your claim, instead of losing hope, again file the dispute by finding and attaching more valid documents that support your dispute.
- Negotiate with your creditors: Along with disputing errors with the credit bureaus, the agency may also negotiate with your creditors in an effort to settle your debt for less than you originally owed. This will help you save time to dispute errors on your reports and waiting for around a month for the credit repair company to revert.
A credit repair company with significant experience can help you get your score fixed in less time. But let us tell you one thing that in case your credit report consists of any negative information that holds true or accurate, then no credit repair agency can do anything within the legal framework to get those errors removed from your reports.
The company will also assist you in developing a more precise understanding of your credit report, provide insights on how the FICO score is determined, and to identify strategies that can be implemented to boost the financial standing in the long run.
Using the services of a credit repair company will help you to take all the required steps to make your credit report free from inaccuracies and add rockets to your FICO score. With a better score, you can improve your financial standing as well as save money on future borrowings. Credit repair needs some time, and the same also depends on the severity of your score, but the time is worth investing as it will bring you a bunch of financial benefits. Credit repair companies put all their efforts into rebuilding your financial standing in the eyes of the lenders.