Because your credit is the key to your financial health, it’s important that you do everything you can to take care of it. And while there are common mistakes that can have a negative impact on your credit, sometimes credit reports contain derogatory marks that are no fault of your own. If your credit reports contain errors, while you can work to remove these errors yourself, a credit repair service may also be able to help. Here’s what a credit repair service can do:
Encourages you to check your credit reports
Credit repair services are designed to help you fix your credit by removing any erroneous derogatory marks from your credit reports. But before these services can remove errors from your credit reports, they’ll need to know what’s actually on your reports. Because these services aren’t legally allowed to pull your credit reports on your behalf, due to the Fair Credit Reporting Act, you’ll need to request them on your own then share your reports with the credit repair company.
For those who aren’t aware, there are a couple ways to check your credit reports. You can check all three of your credit reports — from Experian, Equifax and TransUnion — once every 12 months for free by using AnnualCreditReport.com. If you’ve already checked your credit reports within the last year, you can still request your reports and credit repair services can help you do this, but you’ll have to pay a small fee to do so. Some credit repair services, such as Lexington Law and CreditRepair.com, even offer credit report monitoring tools which can help you keep an eye on your credit (after you signed up for the service) by sending you alerts any time there’s a change made to your credit reports and credit scores. Opting for a service with this feature will help you stay informed of the most current state of your credit health, as you’ll know exactly what’s being reported on your credit at all times.
Works with you to spot errors
While you may think your credit reports are error-free, credit report errors are more common than you may think. In fact, the FTC found that one in four consumers identified finding errors on their credit reports — that’s 25% of all consumers. As we noted above, you can dispute these errors on your own behalf, it may be helpful to have an advocate fighting for you. That’s where a credit repair service can help. Once you’ve obtained a copy of your credit reports and shared them with a credit repair service, it will review the information on your reports with you to determine what may or may not be a derogatory mark. It should be noted that credit repair services can only help you remove errors from your credit reports. If there are negative marks on your reports that are factual, you cannot have these marks removed. However, if there are errors on your reports that are negatively affecting your credit reports, you can have these marks removed.
Disputes these errors on your behalf
Once you are aware of the errors on your credit reports, you can work to get those errors removed. Credit repair services work on your behalf by establishing communication with the credit bureaus, filing disputes for credit report errors, following up with the bureaus and ensuring those errors are removed. Here’s how it works: a credit repair service will contact the credit bureau reporting the error and that credit bureau then has 30 days to look into the alleged error and authenticate the information on your reports. If they’re unable to do so, it must be removed from your credit reports. Most credit repair services also offer a guarantee with their services, as they’re experts in the credit repair service with a proven track record to show for it.
Visit our credit repair service reviews to learn more about how these types of services can help you.