Do you know that your credit score can impact your life in numerous ways, from your ability to get a loan to your chances of renting an apartment?
According to a study by the Federal Trade Commission, 1 in 5 people have errors on their credit report that negatively impact their score. Unfortunately, this means that millions may miss out on loans, credit cards, and other financial opportunities due to errors or inaccuracies in their credit report.
Let’s say you’ve recently checked your credit report and noticed some errors, such as a missed payment that you know you made on time, or a debt marked as “charged off” even though you’ve paid it off in full. Other credit report inaccuracies can include:
- Incorrect personal information.
- Outdated or inaccurate account information.
- Somebody opened an account in your name without your knowledge.
These errors negatively impact your credit score and make it harder for you to get credit approval.
To fix these errors, you can start by contacting credit reporting agencies (Equifax, Experian, and TransUnion) to dispute the incorrect information in your report. You’ll need to provide evidence to support your dispute, such as copies of receipts or canceled checks. The credit bureaus have 30 days to investigate your dispute and remove any errors or inaccuracies.
If the credit bureaus don’t remove the errors, you can contact the creditors or debt collectors directly to dispute the information they’ve reported. But, again, you must provide evidence to support your dispute and ask them to correct their records.
Another option is to work with a credit repair company. A credit repair company can review your credit report and identify any errors or inaccuracies hurting your score. They can then dispute those errors on your behalf and follow up with the credit bureaus and creditors to ensure they are corrected.
In addition to disputing errors, a credit repair company can also work with you to develop a plan to improve your credit score over time. They can guide you in managing your debts, paying your bills on time, and using credit responsibly.
However, not all credit repair companies are created equal. When looking for a reputable credit repair company, have these in mind:
- Reputation: Research and look for reviews and testimonials from previous clients. A reputable company will have positive reviews and a track record of success in helping clients improve their credit scores.
- Services offered: Ensure the company provides services that meet your needs. For example, if you need help disputing errors on your credit report, ensure the company specializes in credit report disputes. If you need help negotiating with creditors, ensure the company offers debt negotiation services.
- Transparency: A reputable credit repair company will be upfront about its fees and services. They should explain what they will do to help improve your credit score and how much it will cost.
- Accreditation: Look for a credit repair company that the Better Business Bureau or a similar organization accredits. Accreditation indicates that the company has met specific standards of quality and professionalism.
- Legal compliance: Ensure the company complies with all state and federal laws governing credit repair services. For example, the Credit Repair Organizations Act requires credit repair companies to provide a written contract that outlines the services they will offer and the fees they will charge.
- Communication: Choose a credit repair company that communicates clearly and regularly with its clients. They should keep you informed about the progress of your credit repair efforts and be available to answer any questions.
Overall, credit repair involves:
- Identifying and correcting errors on your credit report.
- Negotiating with creditors to resolve outstanding debts.
- Developing a plan to improve your credit habits over time.
By working to improve your credit score, you can open more financial opportunities and achieve greater financial freedom. However, improving your credit score alone can be time-consuming, so many people choose to work with a professional credit repair company.
If you need help improving your credit score independently, we can help you. So please book an appointment with us today to help us unlock your financial freedom and achieve your goals for a brighter financial future.