Credit repair, yielding several names like credit correction or debt plumbing, is an in-depth process with full coverage. A typical contractual agreement entails; (a) reviewing of individual credit reports, identifying significant errors, performing legwork and filing of legal disputes on bad objects listed with relevant counterparties. Argo & Michin [2015] mentioned on the legitimacy of certain industry standards. Hence, some unknown credit repair companies provided sketchy ideas while others struggled to remain competitive in this peculiar segment.

 

Fortunately, most local agencies held valid licenses to perform legal credit fixes. Remedies usually derived from “colorful” packages, touting one-stop integrated solutions and overseeing the entire operation – sometimes not requiring the applicant to lift a finger. What exactly is credit repair service and how do they function well?

 

Why do you need to correct your credit report?

A credit report represents the lifespan of your debt utility ratio. Every local credit bureau (Equifax, Experian or TransUnion in the States) owns your credit file but consists of slight variations – differing from one another.

Majority of borrowers tend to be surprised at the different reporting standards. Does this mean that you should not seek financial assistance from either one? Research studies from Experian…

  • A quarter, approximately 1 in 4, possess a mistake that potentially impacts a consumer’s credit score
  • 5 percent, approximately 1 in 20, possess a mistake that lowers a consumer’s credit score by almost 33 points

 

Fact: A study revealed approximately 79% of all reports contain minor errors, not impactful enough to affect credit-trustworthiness

 

Assuming your credit score declined by a massive 33 points, financial institutions might consider refreshing existing privileges like pulling good credit grade to junk credit status. What this means is that licensed moneylenders no longer remain keen to offer quality loan products or rendering cost-effective mortgage solutions. Overall, you ended up forking out unjust interest rates on long-term liabilities and cash advances [Maintaining Adequate Lines of Credit, 2013]. Is it the end?

 

 

Truth is that mistakes can actually be undone on your personal credit report, an uphill task leading to improvements on your credit score – KIG Hall’s Definitive Guide, 2015

 

How does credit repair help resolve these errors?

Upon reviewing your existing reports, by performing credit repair, you can fish out listed errors, expired mistakes or potential discrepancies. You’ll painstakingly file those issues with 3 main credit bureaus. No – there is no flanking mechanisms in dispute management to each bureau individually.

 

The role of a bureau is to attend to the dispute request. Once you furnished a list of discrepancies, the appointed agent shall review the request and notifies the claimant, who has to respond within the slated dates. If there is a mismatch (i.e. creditors providing substantiated evidence) then the particular request has to be removed from your dispute file and vice versa.

 

However, verified claims from creditors could be debated. Mishkins [2013] argued that some claimants exaggerated their responses. The assigned officer may seek redress and warned on falsified claims. Such frictions may cause problems in future when you utilize innovative methods to maximize your credit score; securing fresh bank loan overdrafts, house mortgage or even landing in a job interview! Letters of dispute have to be written by professionals if you’ll like to minimize legal repercussions but getting the mistakes undone.

 

Why appoint local credit repair services?

The internet can seemingly resolve any problems today. No? Why don’t you do credit repair on your own then? Is it really cost-effective to personally attend to individual queries?

 

If you possessed a huge sum of disputes or a radical list of borrowing histories, chances of having a completely error-free report is going to drop rather significantly. Remember that it is going to affect any future borrowing applications – Bank loans, Mortgages, Lines of credit and Payday.

 

For your convenience, a credit repair service meets your expectations, as the company knew the right solution to dispute and negotiate with creditors. Obviously, you’ll stand an opportunity to leverage on both the agency’s expertise and relational contracts [Sim & Maksimovic, 2015], thereby bolstering your reputational assets in the realm of lending faculties.

 

Why not appoint a local credit repair specialist right now?