People often seek out a credit repair service, but they ultimately don’t know how it works. Did you know you can do this independently, assuming you have the right tools and enough time? It’s time-consuming and tedious to go through all these steps. Sometimes, people don’t know all their protections and rights as a consumer. That’s where quality credit repair services come into play. Many 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.
Credit repair companies are an excellent 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. 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 reducing the amounts and removing inaccurate items altogether. If you’re looking to fix credit a failing score, options are 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, knowing how they will work is best. 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 visit 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 your service. However, before this meeting, you will need to piece together a few items, including:
Most services will obtain copies of your three bureau reports with your permission. This process happens before 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. Credit repair companies will then begin the dispute process and fix your credit score. 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. If necessary, your specialist will also lodge a dispute with each of the three credit bureaus. If creditors fail to respond, the credit repair companies will usually begin a legal process that will compel them to do so. When repairing 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. Credit specialists will follow up with both of you here. We also see the creditors escalating the process towards legal action should any lenders fail to comply. This seems to happen more often for people who take out short-term cash advances and bad credit title loans, as the interest rates can be high for both.
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 well, but some will try to exploit your situation.
You don’t always need a certified credit repair company to fix your credit score. Following the steps we outline above, you can turn to a national service that does the work for you. Or you can fix your credit and save money and the hassle of working with a company instead of doing it alone!