Repairing your credit can be a long and stressful process. Without good credit, it can be difficult to find lenders to give you opportunities that would allow you to begin repairing your credit. Repairing your credit can be additionally frustrating when it feels as if your low credit score was a fluke completely out of your control. This is why some people in this position turn to credit repair services.
Credit repair services are companies that help to build your credit by disputing outdated or incorrect information on your credit reports. These companies also follow up on any results and continuously monitor to make sure these errors don’t reappear.
Because a credit repair service disputes inaccurate or outdated information on your credit score, it won’t be helpful if your credit score is accurate, timely and can be verified.
But if you do have outdated or incorrect information on your credit report, a credit repair service may be the right option for you.
Choosing a credit repair service
When choosing a credit repair service, be aware that there are scams out there. Make sure you vet any company before working with them to ensure that they’re legitimate, and not a scam.
The Federal Trade Commission (FTC) warns caution against using any credit repair service that guarantees they can remove negative accurate information. The FTC also warns against working with a company that offers you a new identity. These “credit repair services” are fraudulent.
Though there are scams out there, there are also plenty of legitimate credit repair services. This is why it’s so important to do your research before choosing a credit repair company.
Fortunately, the Credit Repair Organizations Act requires companies to provide you a total on costs, as well as an estimate of when you’ll see results. This act also allows you three business days to cancel services with no charge. This helps to protect you.
What does a credit repair service do?
Legitimate credit repair services check for inaccurate information on your credit reports. The credit repair service will dispute the inaccurate negative information on your behalf. They’ll also check back to make sure the information doesn’t reappear.
Errors that can be addressed include:
- False accounts that don’t belong to you.
- Bankruptcy that isn’t yours.
- Misspellings.
- Negative marks too outdated to be included.
- Debts that can’t be verified.
While a credit repair service may not be the right option for anyone looking to rebuild their credit, it can be very helpful for some. If you were a victim of identity theft or fraud, a credit repair service may be the right option for getting your credit score back on track.
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