How Credit Repair Works
Many consider credit repair as some sort of mystical agency that operates in its own mysterious ways. The truth is that it uses real laws and practical solutions to boost your credit score from negative to positive.
Using Real World Solutions
A professional credit repair agency is no magic act that can erase your financial woes with a swish of the magic wand. What they can do is apply their keen financial insight to clean up your credit report.
The Three Step Process
The first thing you need to understand is how and why a negative score occurs. Late payments and increasing debt are a couple of factors that pull down your credit score. A credit repair agency targets these factors and helps you rebuild your FICO score. They employ a three-step process:
- Looking for Errors
We have stated before that credit reports can contain errors. For no fault of yours, these erroneous items will negatively affect your score. The very first step in the credit repair process is to scan through your financial report and identify any items that should not be present. They could be a payment that you did not make, or a debt that you do not owe. This first step is perhaps one of the most important in the repair process because it lays the groundwork for the next step.
- Contesting the Errors
The second step is all action. Once the credit repair agency has identified the errors, they then send the information to the respective lenders. The information is followed up with a call or a meeting where the erroneous items are discussed, challenged and removed from your financial report. If a lender were to disagree with the information, the dispute is then moved to a legal agency. Everything is done within the ambit of consumer laws that protect you.
- Communicating with the Credit Bureaus
The third and final step in the process is to communicate the changes to the credit bureaus. Once the erroneous items have been removed from the report, your score will reflect that change. This needs to be communicated to the respective credit bureaus who will then log it in their database.
Communicating With You
Another important part of the credit repair process is the agency keeping you updated on the various steps they are taking to improve your financial score. If you invest in a credit repair company, you should be informed about the actions they are completing on your behalf.
If you’re interested in effective, compliant credit repair, look no further than Action Credit Repair. Our experts will provide a personalized credit consultation, an audit of your credit history, and offer solutions to all of your credit obstacles. Contact us today to speak with an experienced professional: Call 518-945-2299 or email [email protected].