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FINANCE

Credit Repair Companies: How Do They Do It

By October 15, 2018 No Comments
credit repair

What are the requisites to get a home loan? Let’s say, sufficient balance for down payment, capacity to pay off the debts, and a good track record. You may make out the former two requirements but when it comes to the track record, you may find yourself lagging behind.

Your credit report shows your entire payment history. Whether you want a home loan or a credit card, a cleanup credit report is always required. Besides, for each type of credit, the score requirement also varies. For instance, when you are looking for a home loan, the FICO score of more than 580 is recommended whereas in the case of credit cards a score in the range of 680 to 750 is recommended.

However, having a good credit score all the time is surely a catch 22 situation. At times, you try to repair it on your own, but cannot sustain the good score. Hence, it is advised to consult the accredited credit repair agencies that would not only repair your score but also help you to maintain it.

We have seen people having too many myths about the reliability of the credit repair agencies. We would like to clarify that the accredited agencies are quite trustworthy and have transparency in their work. Here is detailed information to help you understand how credit repair agencies work.

What’s Credit Repair?

Before knowing how a credit repair agency work, you should know what credit repair is.

Technically speaking, it refers to fixing the bad credit. However, the term is also used for the dispute process when one files an application with the credit bureaus regarding errors found in the report.

Removal of Negative Items

As you all know, your 35% score is made up of your payment history. The worse history you have the lower your score is. If you want to boost your score at a faster pace, removing the negative items from your history shall help you the most.

However, due to lack of knowledge and skills, it’s quite daunting for a layman to remove the negative items entirely. The credit repair agencies have highly skilled professionals who are proficient in removing unlimited negative items of your report.

Accuracy of Report

Except following the above strategies, the credit repair agencies work on two major aspects of the report viz. 100% accuracy and its fairness.

Here, accuracy does not mean only errors in the report. For instance, when your collection account has been sold to many debt collectors, it appears multiple times in your report. Here, though the information is accurate, the duplication of data in the report drops down the score. That is where the credit repair agency comes to your rescue. It helps you remove items that are being duplicated or appears multiple times in the report.

Fairness of Report

Talking about the fairness of the report, according to the study of federal trade commission, one in five consumers has an error in at least one of their credit reports for which free dispute process can be filled with each of the bureaus.

As the credit agencies have an expertise in the field, it can effortlessly deal with the dispute process of your report especially when there are more than one disputed items in the report. It shall not only assist you to resolve the disputed items with the bureaus but also repair your score using various means.

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