There are a number of credit repair online services available to help consumers correct errors on their credit reports. However, not all are created equal. Consumers should be wary of any company that promises a quick fix to their credit problems or that they can remove legal actions like bankruptcies from your report. These companies are likely not legitimate and could end up costing you more in the long run. Instead, focus on finding a credit repair service that offers a low upfront setup fee and a reasonable monthly charge. Then, take a look at customer reviews and check for any lawsuits against the company.
A reputable credit repair company will make it clear to you that fixing your credit will take time and that the negative items on your report will remain on your report for seven to ten years. However, the goal of a good credit repair company is to ensure that your report is accurate so that you can have a clean bill of health when creditors review it. In addition to disputing inaccurate information, a good credit repair company will also coach you on how to handle your credit accounts so that you can avoid future mistakes.
The most common error that credit repair services correct is unauthorized hard inquiries. These are inquiries that appear on your report by a lender or creditor and aren’t authorized by you. Most credit repair services will work to dispute these inquiries and ask the bureaus to verify the information before it’s removed from your report. Creditors are required to respond within 30 days and if they can’t prove that the information is accurate, it must be removed from your report.
Other errors that can be corrected by a credit repair agency include:
Inaccurate information in your account history, such as a missed payment that you never actually made or a bankruptcy that was filed by someone else. Inaccurate addresses, phone numbers, and social security numbers. Errors in public records, such as liens and judgments that don’t belong to you. Mistakes in your name, spelling, and aliases that can cause confusion and prevent you from getting the loans and credit you need.
Credit repair agencies can also help you to remove negative information from your credit report by contacting the credit bureaus and demanding that the information be deleted. This can include disputed late payments, bogus charges, and even identity theft information.
It’s important to remember that while removing inaccurate information from your credit report can improve your score, the best way to increase your score is through positive actions such as paying down debt and keeping a low credit utilization ratio. If you want to use a credit repair agency, be sure to find one that is CROA compliant, doesn’t demand payments upfront and doesn’t encourage you to lie on your application. You can also cancel a contract without penalty within three days of signing it, which is one way to avoid being misled by a credit repair company.