Every lender is interested in responsible borrowers – consumers who pay back on time. To assess reliability, organizations focus on your score because it reflects the overall credit history. The higher the total – the more eligible you are as a candidate. Unfortunately, this summary is not always accurate.
Too often, reports from larger bureaus contain false or out of date material. These entries affect the status, making loans expensive or inaccessible. Fortunately, there is a simple solution: professional services. Best Credit Repair Companies Reviewed by Quick credit correction can improve the score for you quickly and inexpensively. But isn’t it better to do it on your own?
Effects of bad scores
Creditors share their data with three major agencies – Equifax, Experian, and TransUnion. These organizations compile reports detailing your borrowing history. Their content defines the total. Lenders aren’t the only ones paying attention. The information is also used by insurers and employers. Overall, bad credit has serious consequences.
The official FICO range is between 300 and 850. Different lenders use different criteria. More often than not, borrowing terms start to deteriorate after the total drops below 720-720. It also depends on the type of loan. For example, government insured mortgages have lower thresholds.
The law allows every American citizen to correct their records, but the process is far from smooth. First, you need to collect the reports and examine them to identify any errors. Second, you need to collect evidence to corroborate your claims. Finally, you will communicate with creditors and bureaus in writing, sending letters of a particular format. There can be a lot of back and forth and the repair can take up to a year in total.
The duration always depends on the complexity of your case, i.e. the number and the nature of the false entries. Some of the typical errors are duplicates, obsolete items, bogus evictions, foreclosures, late payments, judgments, and tax liens. You can find information about events that never happened or evidence of identity theft. The key steps in the process are:
1. Information gathering
This step is the easiest. You can get copies of all three reports from www.annualcreditreport.com website. Digital copies can be downloaded immediately. Alternatively, you can leave a request by calling the organization or sending a letter by post.
By law, you are entitled to one free copy from each of the agencies per year. From now on, throughout the pandemic, this service is accessible every week. Note that all three sources must be considered at the same time. Indeed, each credit institution can share its information with a single office.
2. File review
Go through the records line by line and check all the details. In addition to the entries, pay attention to the accuracy of your personal information such as name, address, and social security number. If a fraudster has taken out loans on your behalf, you can spot them immediately. Anything that appears suspicious should be examined.
3. Collection of evidence
Of course, the office will not remove any details without supporting evidence. Support your claims with bank statements and other documents. You can ask your creditor for details on the items he has reported.
4. Contestation of errors
Finally, you should write and send dispute letters to all relevant credit bureaus. The Consumer Financial Protection Bureau provides models on its official website. Send your letters by certified mail, in order to have tangible proof of the exchange. The law requires every reporting agency to investigate your dispute and respond within 30 days.
5. Get the results
Eventually, the office will erase the items in question or request additional proof. If items are officially deleted, they may not be restored. The office will send you a free copy of the enhanced report. Your score will immediately increase once the overrides clear.
The convenience of professional repair
Obtaining self-secured credit is a complex undertaking. It takes time, patience, knowledge of applicable laws, and formal written communication. If the agency needs more evidence, the process is extended. Usually it takes between six months and a year. Naturally, professionals get the necessary result much faster.
In credit repair, the result is never guaranteed. Nevertheless, a team of experts will collect and analyze the data more quickly. They are competent to liaise with creditors and bureaus. The best companies offer a money back guarantee, so you have peace of mind. Customers delegate repair and monitor progress using online tools or applications. They have access to customer service and notifications. Some companies will even offer you a line of credit, so you can also rebuild, not just repair, your history.