September 26, 2023

A simple question with a not so simple answer. Credit repair is a legitimate financial service regulated by the Federal Trade Commission. The problem lies in what consumers expect from the credit repair process.

Is credit repair going to erase all of your negative accounts, create a flawless  profile and boost your credit score hundreds of points? No! Unless you’ve had your identity stolen it’s probably not going to be the miracle that you want it to be.

What Does Credit Repair Do? – Credit repair has become this all-encompassing term that actually includes a group of financial services. While some companies may only handle one or two of those services, you ideally want to find a comprehensive credit repair company that addresses all of your potential problems.

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Analyse Credit Reports – Your credit reports determine your credit scores. Like any financial service, a credit specialist should take the time to go over your credit reports with you. They should explain what is helping and what is hurting your scores, and what they can do with your specific situation.

Challenge Inaccuracies – Many companies base their entire operation on this particular step. Being able to dispute mistakes or outdated information is definitely an important part of repairing credit, but if it’s the only thing you’re attempting, you’ll probably be disappointed with the results. This process should ensure that your credit reports are 100{ee2a2ced2e83a70af3b12a5f5f4bc88f1c095ae1846c54ee750c7ec9c020c045} accurate, it’s not designed to dispute every negative account in the hopes that maybe those items will be removed.

Debt Settlement – If your reports Credit Zipper show outstanding debts, then you want to work to pay those off. Debts with collection agencies can absolutely ruin a credit profile.

Establish Positive Credit – This is where many of the repair programs fall short. Sure, removing some negative items and paying off some debts may have stopped your score from tanking, but it’s not going to get your score moving in the right direction. Your recent credit history is going to play a large part in your credit scores. You need to establish new, positive lines of credit if you want to boost that score of yours.