Credit repair is defined as the process of repairing a credit report that has gone bad for any reason that had caused it to deteriorate. The process could simply be correcting mistakes with credit companies or a complicated identity theft, which requires extensive work.
The process could be needed even if you are paying your bills consistently. This is because there are cases where people who paid their dues consistently witness their credit scores fall down for a variety of reasons. Majority of them are not even aware that they need to repair their credit scores until they apply for a credit card or housing loan.
There are companies that specialize in credit repair but you do not have to go to them every time, since there are instances where you could do the fixing on your own quite easily. If you find errors in your credit report, which is a good possibility if you are dealing with credit report problems, you can mail all those companies and have the mistakes corrected. Most companies are very willing to fix errors fast but if a particular problem lingers, it might be necessary to seek legal counsel to have the error corrected. There are many lawyers that can take up the job and draft you a letter for a small fee.
If the repair could not be done on your own, you could enlist the help of credit repair company. A good number of them have cropped up recently but bear in mind that not all of them are legitimate. Successful repair depends on the extent of the problem and while repairing your credit score may just require clearing up some misunderstandings, there are instances where professional intervention is vital. Thus, repairing your credit might need financial and legal expertise, which illegitimate companies cannot offer.
If you come across an offer of credit repair, there are some things to keep in mind that will help you determine if the company is legitimate:
? If the company wants you to pay them for their services before providing them, it is most probably a scam. The Credit Repair Organization Act states that no credit repair company can require you to pay for their services until such time that the promised service has been completed.
? If the company will not tell what your rights are or what you can do on your own for free, do not deal with it.
? If the company is offering to take out most or all of the credit information in your report that are negative although such information is current and accurate, you are most likely dealing with an illegitimate company. The truth is that such tactic is illegal and nobody could take accurate, though negative, information away from your credit report.
? It is recommended by the company that you do not make any direct contact with all of the three national credit-reporting firms.
? The company recommends that you try having a new credit identity by using an Employer Identification Number in place of your Social Security Number, and then invent a new credit report.
? It is advised by the credit repair company that all information in your credit report be disputed although they are accurate and up to date.
Author Resource:
Read more about Lexington Law or learn the steps I used to fix my credit .
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