Learn about consumer rights and consumer protection during the process of what to know for a credit repair. Many people “blindly” perform self-fixes or hire an external party to repair bad credit but don’t know on the regulations. FCRA does protect consumers on false information. In troubled times, only good debtors who learned on Fair Credit Billing Act & Fair Debt Collection Practices Act thrives.
What is a credit repair service?
An ongoing process of fixing credit reports – a credit repair service acts as a booster to help creditors regain confidence in lending money. The goal of a CR service is not for debtors to look good, but to help new & aged lenders know that consumer’s credit report is decent.
Most credit repair companies do charge for services to retrieve copies of credit reports. It is good if you request for free copy of a credit report at any reporting agencies. Experian does offer an annual free credit report. Order online for up to 3 copies of credit reports at annualcreditreport.com. The assigned agent shall review your credit report. Send in a list of required negative entries. And seek your approval in removing the negative information.
Repair clinics offer professional cr services. After deciding to go for an aggressive service in repairing credit standing, prepare the reported items for dispute. Your agent should have tailor-made dispute letters of attorney writing to be sent in. A credit bureau will be appointed to accept your credit dispute letters. Typical responding time is within 30 days under federal laws.
Note: A credit repair company has several types of services; aggressive, cheap, or complete.
What is a credit bureau & what they do?
Appointed agency specifically for consumers – a credit bureau is an official agency governed under the Federal laws. FCRA is the regulator of any complaint made against credit bureau. It is important for consumers to know about the pros & cons of filing disputes on incorrect info.
Credit bureaus served as a gateway to communicate between creditors and debtors. The purpose of a credit bureau is to disseminate important information for creditors to make lending decisions. Major clients working closely with credit bureaus are banks, licensed moneylenders, mortgage lenders, credit card companies and other financing corporations.
In short, the role of credit bureaus is to distribute your report for credit inquiries. You have the rights to know who access your credit reports and why. Call in to seek verification of inquirers. Mortgage lenders, banks and credit card agencies should be your primary focus.
Note: Hard credit inquires do harm your credit score.
Do credit repair work for me?
Established credit repair agencies – CR firms operating in the business for a period of 5 years or more. Generally, there are aged cr companies in the U.S. with at several physical locations across different states. A good company does remove negative items listed in your credit report. Helps you achieve better FICO scores. Improves your credit score legally.
Here is 2018’s best credit repair company reviews (updated September 2018):
Lexington Law | Highly rated credit repair company | CreditMarvel rating 9.8 out of 10.0. Free consultation & case evaluation. Over 26 years of experience. More than7.3 million negative items removed in 2016. Good reputation. Consult now!
Sky Blue Credit | #1 Credit repair agency | CreditMarvel rating 9.6 out of 10.0. A+ rating with Better Business Bureau (BBB). Disputes up to 15 items on your credit report per month. Fastest service in the industry. Free consultations. Improve credit score. Good reputation. Consult now!
CreditRepair.com | 1-Stop credit repair specialist | CreditMarvel rating 9.1 out of 10.0. Inception since 1997. Offers 24/7 credit monitoring services. Over 1.5 million negative items removed from credit reports. Personalized online dashboard. Credit score tracker. Consult now!
Do not be afraid to pick up the phone for any of the top 3 cr agencies. Credit repair services from reputable companies offering a one-stop cr specialist clinic work to repair your credit. Simply look out for an established firm being completely upfront on the terms & conditions. Things do get a little rough when creditors refuted disputes but stay with the experienced agents.
Note: A higher FICO score does reduce interest rates on mortgages, loans & credit cards.
What can I do to fix my credit?
Repeated question but much-needed – do only use the best options in handling your report cards. A credit fix is not hard. Either employ a credit repair specialist to remove bad items on a credit report or do-it-yourself credit repair. Never host any bad information as lenders take all accounts & collections into consideration.
There is nothing credit repair companies do that you cannot do. Observe the following tips on how to fix bad credit:
- Deploy resources strategically – budgeting is the key to good credit repair.
- Pay off debt first – no amount of words needed to emphasize on clearing unpaid debts.
- Terminate unused credit cards – cancel any cards that don’t work for you.
- Request for goodwill – send goodwill letters to request for interest cancellations.
- Write-in credit dispute letters – get legal advice for writing credit repair attorney letters.
- Ask for partial debt settlements – figure out what can be paid and what not.
- Follow-up – never leave anything unattended, affects debtor’s reputation score.
Develop a comprehensive credit repair plan. The plan should take effect immediately. It is used in helping to resolve dispute among creditors, get rid of obsolete information, and seek redress for accurate information.
Verified positive information is to be disputed. Yes, re-claiming correct information takes time but negotiate your way out by exchanging terms & conditions. In fact, saved up a lump sum for payment to settle partial credit card or mortgage debt. Then ask again for freezing of cc interests or unpaid interest clearance. Do whatever it takes to lower your total interests repaid.
Note: Be assertive in the process of credit repair dispute negotiations.
How much does it cost to repair my credit?
Expensive or not – cost to repair is often seemed more important than results. Debtor’s solutions do not need to be costly in fixing a credit report. A quick search on the internet reveals the mystery of introducing credit repair costs & types of services rendered.
How much does it cost to repair my credit? One of the prominent websites Creditrepair.com divulges monthly cost of $99.95. It does not include a one-off charge of $14.99 to retrieve credit reports (but you can negotiate to send in your report card). Loyal members have a personalized dashboard to review progress of credit repair.
If the price of $99.95 per month does not entice you, observe the aforementioned list of credit repair companies. Choose an ideal one, preferably meeting the needs of your repair criteria. It is because professional credit repair services do take up to a year or more & aggressive credit repair companies taking about 3-6 months. Time is definitely a concern here!
Note: Cheaper credit repair services don’t necessarily mean useless or good-for-nothing.
How does credit counseling services help in repair?
Credit counseling services – a credit counselor is appointed by several prominent credit councils in place to help debtors. Generally, counseling credit services originated from non-profit companies. An experienced credit counselor is available to set up debt management plans after providing an informative talk.
3 simple ways to connect with a credit counselor:
- Phone call – dial the extension number of your console to reach a counselor.
- Appointment booking – a popular way of finding professional credit counselors.
- Referral letters – banks do send troubled debtors in writing for counseling sessions.
The good thing about such services is on the free credit counseling sessions. No one is charged or required to pay upfront for a credit counseling. It’s usually after the talk that professional credit counseling advices helped to make informed decisions. Set up a debt management plan.
Alternatively, you may opt to perform debt settlements according to bank’s rate. Or, go ahead with credit card debt consolidation loans. There are several variants to counseling of credit services. Find one that helps in decision-making processes. Do not get uncomfortable at the beginning phases of tight cashflows. Every debtor goes through the same.
Note: Debt settlements and debt consolidations are another form of counseling.
Good to know about need: what to know for credit repair
Role of credit repair – repairing of credit is not a job. You’ve to constantly update your individual information & ensure that you have ample cash to finance down payments. A loan is granted for consumers with bad credit but either the help of FHA-backed loans or credit builder loans. This is the target set so continue to do credit repair. FHA demands at least 580 credit score while other FHA-backed mortgage lenders demanding 660 credit score. Know the rights of consumer and get protected by credit repair specialists.
People also ask:
What is a credit agent?
What happens if I have a bad credit history?
How is my credit score calculated?
What does a credit card specialist do?
How can I get more than 3 credit reports?
Quote of the Day: “Improvise on financial planning – KIG Hall [2013-2018]”
» Highly effective cr techniques: How to win a dispute?
» Aggressive credit repair: Challenge your creditors!
» Hire reputable credit repair companies: Who do you trust?
» What you need to know about a credit repair: Knowledge is freedom!
» Pro’s & Con’s of a credit repair: Pros & cons of a credit repair!
This article was originally published on March 27, 2014. It has since been updated.