A recent study indicated that 79% of consumers have some kind of error or inaccuracy on their credit report.
What is Credit Repair?
Credit Repair is the process by which a consumer retains a third party company to act on their behalf as a limited power of attorney in attempt to remove inaccurate, obsolete, misleading negative information from their credit reports – typically from the 3 major credit bureaus (Experian, TransUnion, Equifax and sometimes even Innovis). The companies that provide offer these services are referred to as “Credit Repair Organizations” by the Credit Repair Organizations Act (hereinafter referred to as “CROA”), the Federal law that controls their advertising, billing, and contractual activities.
The traditional strategy of a credit repair organization in the last 10 years, has involved sending dispute letters to the credit bureaus challenging the validity of negative items on consumer reports.
Most Credit Repair Companies genuinely want to help to help consumers improve their credit. Shocking but true!
How do Credit Repair companies help?
If you know how to read, interpret and comprehend your credit report, then you must know how one blemish on your credit report can have a considerable negative impact on interest rate, application for a personal or business loan, and much more.
However, if you do not fully understand how debt to credit ratio (utilization ratio), payment history, and new versus aged accounts make an impact on your credit score, Credit Repair companies can help educate and prepare goals for credit improvement.
Together, the consumer and Credit Repair Company can improve your credit enough to lower interest rate, which in turn, can save you thousands of dollars on a loan. If that’s not enough, Credit Repair companies may also help you get approved for a credit card once again, which in turn (depending on the credit line approved) can help offset the costs of the credit repair service. It’s a win-win for everyone.
Free Help With Your Credit
Before you begin spending money on one of these services, we want you to try fixing your credit yourself. We understand that sometimes credit repair fees can get quite expensive and it may be better to allocate that money to pay down current outstanding debts, or perhaps save towards a down payment on a house or a car.
You can check your credit score each month using one of highly reputable credit monitoring services on VelvetProtection.com. The tools provided will help give you better insight on how your payment history, debt/credit ratio, credit statute of limitations, and other factors are affecting your overall score.
Good Tip: Remember that by checking your own credit reports and scores does not affect your credit score in any way.
But here’s the thing: you have the right to dispute any inaccurate or incomplete information on your credit report yourself – and the credit reporting agency must investigate the dispute without charge to you.
What do I need in order to start working with a Credit Repair Company?
Generally, there are 3 steps to the service that these credit repair organizations offer:
1. The companies will ask you to forward them copies of your credit reports (usually from the three major credit reporting agencies – Equifax, Experian, and TransUnion), which you must obtain directly from those agencies or third party credit report furnishers.
2. The credit repair organizations then will review and map out a plan with you on which items on your credit report you should dispute
3. The credit repair organizations then contact the credit reporting agencies to challenge questionable items on your credit reports.
Many of the credit repair services have extremely high success rates. Before selecting a company to work with, check our reviews of each company because we’ve done the thorough research so that you don’t have to. Also consider what services are included in the price and what services will meet your personal needs.
If you still have questions, please call us at 888-459-7701 or send us an email and we’d be more than happy to pair you up with a company that will best suit your credit needs.