How Does Credit Repair Work?

People often seek out a credit repair service, but they ultimately don’t know how it works. Did you know this is something you can do on your own, assuming you have the right tools and enough time? It’s time consuming and tedious to go through all these steps. Sometimes people simply don’t know all their protections and rights as a consumer. That’s where quality credit repair services come into play. Many of these people are experts at helping people repair credit and fix their FICO scores. In the following article, we will look closely at the process by which credit repair companies can help consumers.


How Does Credit Repair Work

Credit repair companies are a great resource for those with a less-than-perfect financial history. These firms are experts in credit law and collection issues. Therefore they can help consumers in leveraging their legal rights. Use this effort to check their scores are correct and validated.  Many consumers have negative items on their credit reports. look at reviews and complaint history for any company you work with We often feel stuck and hopeless because of late payments or bank liens, thinking there is no way to get out from under the 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 fix credit a failing score there are options available online and in person. Your best bet is to turn to the professionals at one of these companies.

Like any other important financial matter, it’s best to compare companies based on their history of reviews. Many of the largest and best credit repair companies are listed in our directory. 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 in a few core components. They will fix your score and repair your credit for the long-term. Do you feel like your particular credit situation warrants special attention from professionals? Seek out people who understand and practice credit law. You may wonder how the process works. Here we will explain the process in detail:


Step One: The Credit Repair Intake Process

 When you decide to pay a visit to one of the thousands of 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 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, an expert will suggest you to consolidate some of your credit card debt.

Most services will obtain copies of your 3 bureau reports with your permission. This process happens prior to the intake meeting. The report includes a copy from the three major credit bureaus: TransUnion, Experian, and Equifax.


Step Two: Credit Repair Dispute Process

The company is now armed with all the information they need to repair credit. As well as fixing your credit score, credit repair companies will then begin the dispute process. They start to challenge inaccurate items on your report. During the process, letters will be drafted to each lender/creditor asking for proof of these negative line items. Your 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. During the time it takes to repair your credit report, you may wonder if it’s best to repair your spending history on your own time. While this can save you money and time, it may be best to leave the bulk of the work to the experts.


Step Three: Budget Analysis and Self-Help

Credit repair companies are trained to help individuals analyze their spending habits. 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. Some firms offer online and telephone-based help from people online. The final part of the process is usually termed the “follow-up and escalation” phase. Here credit specialists will follow up with both of you. We also see the creditors escalating the process towards legal action, should any lenders fail to comply. This seems to happen more and more for people who take out short term cash advances and bad credit title loans as the interest rates can be really high for both of these.

Once you arrive at this point you can begin to breathe easily. 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.


Find A Quality Credit Repair Service!

You don’t always need a certified credit repair company to fix your credit score. By following the steps we outline above you can turn to a national service that does the work for you. Or you can make the decision to fix your own credit and save money and the hassle of working with a company as opposed to doing it on your own!


Use a quality credit repair service to fix your credit score.