How Does a Credit Repair Company Fix My Credit Score?



People in the United States are afforded many consumer protections when it comes to their credit, but most of them are unaware of these protections and their rights as a consumer. That’s where quality credit repair companies come in—firms that hire individuals who are experts at helping people repair credit as well as fix their credit score.  In the following article we will look closely at the process by which credit repair companies repair credit, thereby ensuring everyone has a fair and equal chance of achieving the American dream.

 

Learn how the best credit repair companies can fix and restore credit

Credit repair companies can be a great resource for those with less-than-perfect credit. These firms are experts in credit law, and therefore can assist consumers in leveraging their legal rights in an effort to ensure their credit reports are just, correct and validated.  When consumers have negative items on their credit report, whether it is late payments, charge-offs, liens or even bankruptcies, they often feel stuck and hopeless, thinking there is no way to get out from under their credit mess. However, credit repair companies use the existing credit laws to help challenge items like these, often getting the amounts reduced and inaccurate items removed altogether. Simply put, if you’re looking to repair credit and fix credit score your best bet is to turn to the professionals at one of these credit repair companies.

Like any other important financial matter, it’s best to compare companies based on their history of credit repair reviews. Many of the best credit repair services are listed on our homepage. Take some time and research the listed firms based on their requirements and reviews. Once you settle on a repair service it’s best to know how they’re going to work. Most credit repair companies specialize on a few core components.  They will typically fix your credit score and repair your credit for the long-term.  If you feel like your particular credit situation warrants special attention from professionals who understand and practice credit law, you may be wondering just how the process work.  Here we will explain the process in detail:

 

Step One: The Intake Process

 When you decide to pay a visit to one of the thousands of credit repair companies throughout the country, the first step is the intake process. During this formal meeting a professional will analyze your situation carefully and thoroughly, and explain the costs associated with their service.  However, prior to this meeting you will need to piece together a few items, including:
 

  • Picture identification.  Your identification will need to be verified by the credit repair company.
  • Social Security Number. Your credit repair specialist will need your social security number in order to access your credit report.
  • Copy of all assets.  In order to best assist you, your credit specialist will need to get a clear financial picture. In this case, the term “assets” means copies of your most recent bank statements and a list of any real property that costs more than $500 (most states)– including homes, automobiles, recreational vehicles, furniture, jewelry, etc.
  • Proof of income. Here you will need a copy of your most recent pay stub.  Most credit repair companies will ask for a few different types of proof of income.  This is common and is one of the many steps.
  • Copy of all debits/debts.  This is perhaps the most important line item on this list, as it is this information that will be used to help repair your credit. The items typically include home and automobile loans (that are still owed), copies of all credit card statements, rental agreements (if renting), utilities, etc.
  • All credit cards. In many cases, credit repair companies will suggest you to consolidate some of your credit card debt.

Typically, credit repair companies will obtain copies of your credit reports (with your permission) prior to the intake meeting. And the report includes a copy from each of the three major credit bureaus: TransUnion, Experian, and Equifax.

 

Step Two: Dispute Process

Armed with all the information they need to repair credit as well as fix your credit score, credit repair companies will then begin the dispute process, in which they challenge inaccurate items on your credit report. During the process letters will be drafted to each lender/creditor asking for proof of these negative line items. Your credit specialist will also lodge a dispute with each of the three credit bureaus, if necessary. If creditors fail to respond, the credit repair companies will usually begin a legal process that will compel them to do so.

 

Step Three: Credit Report Analysis and Self-Help

Credit repair companies are trained at helping individuals analyze their own credit report. For instance, these experts will teach their clients how to read the reports from the “big three” credit bureaus.  Even better, they will also guide their clients on how to challenge inaccurate items on their own, and offer online and telephone-based assistance from people in the firm. The final part of the process is usually termed the “follow-up and escalation” phase. Here credit specialists will follow up with both you (the client) and the creditors—escalating the process towards legal action, should any lenders fail to comply. Once you arrive at this point you can begin to breathe easy. The credit repair company should have done the work to make the process easier. Most credit repair services will do a good job, but some will attempt to take advantage of your situation.