Credit Repair Company Vs Credit Bureaus – What’s the Difference?
Credit repair is a service offered by many companies. It is a way of improving a person’s credit score by removing erroneous items from the report. Credit repair services can be purchased as a bundle or individually. In addition, credit repair companies provide consumers with tips on how to manage their credit better. The goal of credit repair is to increase a consumer’s score so that he or she can qualify for home, auto and even furniture loan.
A consumer may begin the process of credit repair by disputing items on his or her report that are inaccurate. Items that are not properly updated or untrue may require the consumer to verify the facts to support the dispute Visit. Consumers should check to see if there is any current information on file with the credit bureau concerning the item. Additionally, a creditor may require verification of employment, assets, current address or other types of verification.
After having done some research regarding the negative item, it is important to begin the credit repair services process. A consumer should contact the company through its toll free number or online. The company will provide a detailed proposal of what they recommend doing. Depending on the nature of the issue, the consumer may be required to contact the bureau, writing a letter or both. These steps may take a little time to complete but they will all pay off once the creditor receives the correct negative item removed.
When a letter to the bureau is received, the consumer should expect a response back within a couple of days. Sometimes the repair services will require additional actions before the items are removed. If the negative items remain the same after this process, the consumer should expect a letter from the bureaus to the companies requesting more information. The bureaus will give the names of the companies requesting the updated information and the deadline to submit the information. Some of the items on the credit report that do not need to be removed may include medical bills, student loans and bankruptcy filings. Sometimes it will be necessary to ask the creditors for proof of these items as proof that they are indeed negative.
It is not uncommon for one’s good credit rating to be challenged. This is when a consumer discovers an error on their report and then begins to dispute it. Once the dispute has been reviewed by the bureaus the company will attempt to remove the erroneous item from the consumer’s report. The company will work with the creditor to make sure the information is accurately added into the system.
The goal of the credit bureaus and the repair company is to make sure the consumer receives the lowest interest rate possible. Most consumers have a good amount of inaccurate or outdated information on their reports. The companies will go over each piece of information with a fine tooth comb until they can successfully remove the bad reporting. Once this is done the consumer will be able to receive a new loan at a lower interest rate. Credit repair is a great way to repair your bad credit report and will help you in all areas of your life. You should seek out professional help if you are unsure about whether or not you should repair your own credit.