Most credit reports have errors that may significantly affect your credit score. Your credit score is one of the most crucial variables that lenders put into perspective when assessing your risk when you are applying for a loan. Just a little blemish on your credit report can amount to a considerable negative effect on loan approval or loan interest rates.
Fortunately, you can have problems with bad credit history and ratings fixed by the best credit repair company. These companies will clean up your credit history, and improve your credit lowering payable interest rates. If you are looking forward to buying a new home, it is very important to make sure your credit ratings are impressive to get the best terms and rates.
Credit Repair Services
Although there are many credit repair services available, only a few are reliable and legitimate. Some credit repair services are scams. They will use illegal ways to help their clients without considering the long-term consequences. Avoid companies that use illegal tactics like:
- Identity theft
- File segregation
On the flip side, there are some legitimate credit repair companies who genuinely want to help their customers improve their credit by using legal tactics.
How do the credit repair services work?
Unlike scamming credit repair companies, legitimate credit repair companies do not promise you a perfect credit score. The best credit repair company knows what loopholes to look for, how to navigate the rules and how to resolve your credit problems to upgrade your overall credit ratings.
Steps to fixing your bad credit
The following are the steps required:
- Dispute any questionable credit record that is listed on your credit report. For example, if you are not familiar with the debt.
- After verification of the disputed item, ensure you call the credit bureau with a copy of your report.
- Use the reference number on your copy of the credit report to confirm the method used by the Bureau to verify. Ensure the method used is correct otherwise dispute it further.
- Ask for the phone number of the original creditor and contact them yourself.
- After calling, ask for a copy of your records. If the original creditor claims they have no records, contact the credit bureau and give them the feedback. You can then go ahead and open a second dispute.
- If the original creditor refers you to the collection agency, ensure you contact the agency and ask for the records under new FACTA Act. Immediately, browse through the records to check for any inaccuracies.
- If the records indicate that the negative entry was an error and does not belong to your credit report, contact the Bureau and open another dispute. Have a copy to assist in your dispute.
You can hugely benefit from a credit repair service if you want to make a major purchase.