Bad credit negatively impacts your financial standing in many ways. A low credit rating can result in getting credit cards and other credit lines at outrageous interest rates and low limits. If your rating is too low, your credit applications may not even be approved in the first place. Moreover, landlords may decline your rental application or demand higher security deposits.
To say it simply the negative effects of bad credit are so far-reaching that many people are ready to do anything to achieve a better score. To this end, you’ll come upon professional credit repair services offering to delete negative items from your reports.
So, do fixes like this work? If not, what can you do to repair poor credit? You will find that out soon…!
Is it Possible To Erase Poor Credit History?
Yes and No. If the right measures are adopted to remove errors in your report, then bad history can be erased. Thus enabling your rating to get a boost. On the contrary a service that assures you to erase correct, but negative information on your report is potentially a scam. Companies like these can even go a step further and promise you a completely new and blemish-free identity.
Are Credit Repair Companies Legal?
Credit repair is a legal service that is directed by the Credit Repair Organizations Act (CROA). Under the act, the Best Credit Repair companies operate within a framework that protects consumers from unscrupulous practices.
This consumer protection act came into effect in 1996 and it bans:
- Altering a client’s identity to hide them from lenders and credit reporting bureaus.
- Promising consumers that they would erase items from a credit report.
- Getting paid for incomplete repair services.
- Recommending you to make deceitful claims to providers of credit information or agencies.
How Do Credit Repair Firms Remove Bad History?
Companies in the credit repair sector work on your behalf to access your financial reports and dispute errors. The Best Credit Repair service ensures that the damaging information is removed from your credit report. The service involves:
Checking Credit Reports
The company requests your reports from Experian, Equifax, and TransUnion. By going through the three reports a credit repair firm can have a complete picture of your finances, because creditors are not required to subscribe to all credit agencies.
Reviewing and Disputing Errors
Credit repair experts go through the various entries in your reports, affirming details as present in supporting documents from the primary sources. For instance, to determine if a credit limit is accurate, the entry is checked against a statement from the specific credit line issuer. All these errors are marked, and the relevant documents are prepared to initiate a dispute.
Disputes would then be raised with both credit bureaus and the originators of the deceptive information. Errors may include a misspelled name or duplication of debt.
The Nutshell
One way of improving your credit standing is detecting and disputing wrong information in your credit report. Typical errors include incorrect accounts, inaccurate personal details, and errors in data management.
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