What can a credit repair company do for me?
If it is low, you may not get the best deal on the loans or even qualify for them. During this time, your chances of getting a dream job diminish and even the best apartments become impossible to rent. Credit scores are universal indicators of reliability. However, they are not always fair. The mission of credit repair is to help you restore your status through the removal of reporting errors.
What makes these services possible
Under the Fair Credit Reporting Act, all national offices in the United States have an obligation to provide accurate information. They should remove any unverifiable or obsolete entries. Unfortunately, it is the consumers who have to prove the inconsistencies. You can do it yourself for free or hire a company to speed up the process. For example, here are some tips for credit repair in houston.
The longer your borrowing history, the more likely you are to accumulate errors. Unfortunately, many citizens remain blissfully unaware of the problem until their loan applications are rejected. Same student loans can cause reporting problems.
The more often you check your reports and correct them, the easier it is. The most complex repair cases take between six months to a year, while the simpler ones can be resolved in a matter of months.
Suppose your score has inexplicably dropped, then you collect your reports to find the cause. You discover that all three offices have inconsistent records. This is possible because each lender can communicate with only one office.
In this case, you have to open three different disputes, contacting each office independently. It takes a lot of work and formal communication. In cases like this, the benefits of delegated fixation are obvious.
Can I do it all myself?
Yes, it is legal and doable. The law protects your rights, allowing you to challenge any questionable information free of charge. Consumers can view their scores and collect the reports for free.
To see where you are, go to www.annualcreditreport.com and download the copies of the three offices. The score can be checked on sites such as My FICO, or in dedicated applications like Credit Karma. Thereafter, you will have to follow the standard repair steps, without the additional help and services provided by Partition Correctors. Here is how it works.
1. Analyze the information
Compare and examine the three official reports. Find any questionable entries. Mistakes can range from misspellings to late payments that never happened or even false events like bankruptcies or evictions. In addition, most negative entries (alias overrides) have a lifespan of seven years. Sometimes the information remains after expiration, which can also be disputed.
2. Prioritize errors
To understand where to start, you need to know how scores are calculated. Each element of the FICO and VantageScore assessment carries a certain weight. For example, payment history is the most influential factor. It determines 35% and 40% of your totals respectively.
3. Collect evidence
Before writing to the offices, you need proof – bank statements and any other documents from your lending agencies. Keep in mind that rating agencies will only delete data if it is unverifiable, unfounded, or out of date. Build your case.
4. Challenge inconsistencies
Finally, it’s time to write and send your challenge letters. Depending on the severity of your case, you may need to contact one, two, or all three offices. All formal correspondence must be sent by registered mail with acknowledgment of receipt. This way you will know exactly when your letters have been received and when a response is due.
In 30 days, each recipient must provide the results of their internal investigations. If you are lucky, the errors will be removed, the score will jump, and you will get a free copy of your corrected report. Otherwise, additional proof or a dispute will be required.
Why pay for credit restoration
As you can see, this is a complex process and a challenge for the average consumer. Not only do you need to collect and analyze three separate stories, but you also need to communicate with financial institutions and offices, collect sufficient evidence, etc. These tasks require a minimum of time and knowledge of consumer credit laws.
If your evidence is inconclusive, the office will either reject your claim or request more data. This makes the fixation even longer. In the most basic case, with the help of a repair company, you can see the first results in over a month. Millions of consumers in the United States would rather pay a fee than go through all the paperwork. A team of professionals can remove:
- any account that does not belong to you,
- false information about late or missed payments,
- false legal events such as evictions, repossessions, bankruptcies, etc.,
- obsolete derogations,
- any unverifiable debt, etc.
In short, these services are well worth the money when your score drops due to reporting errors, but you don’t have enough time to deal with complex disputes. In addition, you can receive a wide range of additional services, such as score tracking, fraud alerts, identity theft protection, personal budgeting tools, and more.
Posted on August 7, 2021