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Mar 15

How Do Credit Score Repair Agencies Work?

Reading Time: 3 mins

If you want to get loan approval and access funds when you need them, it is important for you to maintain a good credit score. However, we often find ourselves caught up in bad credit score. So, what do you do in such an occasion? There is good news for you. You can repair your bad credit score on your own or engage credit repair services to do it for you.

Repairing your credit score involves the rectification of your credit score by disputing the report. This is what credit repair agencies do – look for your credit reports and information from your creditors to help you fix your bad credit report. To succeed in the process, you should provide a clear explanation of your existing debts. Most importantly, you should include supporting documents as proof of your stand concerning your credit score.

 

Credit Repair Agencies for Bad Credit Scores

A credit repair agency is a service that deals with bad credit scores for consumers. Their work is to engage in a process of improving a bad credit score. Consumers file their disputes through these credit repair agencies to help them improve their scores.

There are many credit repair agencies out there. However, it is important to confirm the authenticity of an agency before engaging it. This is important because you will be sharing your personal information with them. If you do your due diligence, you will avoid scammers who may want to take advantage of you.

 

Important Issues to Check in your Credit Report

The quality of your credit report depends on a number of things. Therefore, your credit information report will reflect several items that may render it good or bad. Incorrect information indicated in your credit history may taint your overall report. Therefore, credit repair agencies will sort out this first before looking into other details of the report.

Your credit report may also suffer from defaults on payments. Delayed payments or non-payment of debts has a negative impact on your credit report. However, identifying the cause of non-payments is helpful in dealing with your credit score. For instance, it could be because of the following:

  • Disputes from lenders on chargeable fees
  • Hard economic times
  • Missed payments following an international or domestic relocation
  • Failure to receive card statements to make payment on time
  • Fraud disputes between you and the lender

 

Help from Credit Score Repair Agencies

What kind of help should you expect from a credit score repair agency? Well, here are some important things that you need to know about repairing your credit score. They include:

  1. Helping you understand the credit report. It all begins here. You should get help on understanding your credit report fully. Sometimes, it could be erroneous hence affecting your credit rating.

 

  1. Analyzing all open accounts. Some accounts indicate “open” while you do not know. This happens should a lender miss communication following the closure of your account. Again, the open account may belong to someone else and not you. If this is the case, the credit repair agency will dispute the information.

 

  1. Checking accounts status. Once you have verified that the remaining accounts belong to you, the next thing would be to check the status of each. Lenders will view your accounts negatively if any of them is written-off. However, it will be good to check each account for the correct tagging. The agency will make disputes for incorrect tagging.

 

  1. Confirming your payment history at every stage. Look at all sections to identify missed payments. At this point, you can start making your payments on time to help improve your credit score.

 

With all the help available from these agencies, it is important to note that they cannot edit any of the information or remove a piece of it from the report. Therefore, you should shy away from anyone promising to do that. All agencies must adhere to the normal procedure of improving credit rating.

 

Final Thoughts

It will take time before a credit repair agency can help you fix your bad credit score. However, it should work if you engage the right people. Most importantly, you must understand your credit report and everything that the agency is doing to help you.

 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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