Home » Can Credit Repair Companies Really Fix Your Credit?

Can Credit Repair Companies Really Fix Your Credit?

Can credit repair companies fix your credit rating? The short answer is yes, in that they can dispute unfair and inaccurate negative marks on your report. They can not magically repair the damage of late and missed payment reports, despite the promises of many credit repair scams out there.

So how can a legitimate, well-reviewed credit repair company help you fix your credit?

It is no secret that the credit companies make money off of high-interest rates, so they are interested in keeping your interest high! Some factors influencing your rating include hard inquiries whenever you research or apply for a new line of credit, or continually get close to reaching your credit spending limit.

Credit repair specialists work within the law and your financial rights under the Fair Credit Reporting Act (FCRA) to remove those unfair items from your report.

You may also have an error in your report. The Federal Trade Commission ran a 2012 study in which 26% of consumers had at least one error on their credit report that would give them less favorable terms on loans. Credit repair companies have the expertise to dispute and remove any inaccurate items on your credit report more quickly than you could do on your own.

If you are affected by either of those credit issues, then hiring a credit repair company may be right for you.

Damage Caused by Hard Inquiries and Credit Limit Factors

If your credit rating is low, it is worth looking into if you are affected by either of these factors that are easy to overlook.

The Negative Impact of Hard Inquiries

A credit repair company can help you remove the damage of multiple “hard inquiries” on your credit report. The inquiries happen whenever anybody pulls your credit report for the purpose of checking eligibility for a loan or line of credit. They remain in your credit report for two years and cause a dip in your score.

The rationale behind this is that a consumer who has been maintaining fewer lines of credit longer is less risky than someone seeking multiple new accounts quickly.

A hard inquiry will occur when you are researching terms on applying for a mortgage or auto loan. Although a credit report is supposed to count multiple hard inquiries for these research purposes within 45 days as only one inquiry, mistakes too frequently happen.

Impact of Low Credit Limits and Spending Close to Your Credit Limit

Did you know that the closer you get to maxing out your line of credit each month, your credit rating suffers? In fact, financial experts suggest that to best maintain your credit rating you should use only around 30% of your maximum credit each month.

The limit impacts can be devastating for those who rely on credit to get by. But credit card companies can also ding those who underuse their credit by lowering your maximum limit.

When these factors cause a lot of damage to your credit rating, credit repair specialists will work with the credit companies and bureaus to reduce the impact.

Dispute Inaccurate Items From Your Credit Report

The credit reporting system is far from perfect. Having a common name could mean you end up with a negative credit report listing that belonged to someone else.

At the end of the day, you are the one who is ultimately responsible for monitoring your credit report for accuracy.

Though you have the ability to report an error on your report independently, the credit bureau will always side with the creditor if they stick to their claim.

A credit repair company specializes in working around this broken system. They will dispute the claim with both the credit bureau and creditor to help you remove errors on your credit report such as:

  • Collections
  • Bankruptcies
  • Late Payments
  • Repossessions
  • Charge-Offs
  • Foreclosures
  • Liens
  • Judgments

What Should I Look For When I Research Credit Repair Companies?

Some credit repair companies are better than others, and some are just scams.

You should always do thorough research when looking for a credit repair company. They should be willing to provide you with a free consultation and describe exactly what services will benefit you after reviewing your credit profile.

Here are some factors that should help weigh your decision:

A Full Breakdown of Services

A credit repair company should fully outline their plan to fix your credit before you sign. Your contract should outline:

  • The amount they are charging for their services
  • A full breakdown of services they are proposing
  • A timeframe for accomplishing all those services
  • A written statement giving you the option to cancel within 3 days of signing

Highly Reviewed, Anytime Cancellation

You will want to make sure you hire a credit repair firm you can trust. Look for reviews of the company from different independent sources to make sure they are on the level. You should also ensure that they offer anytime cancellation so you have the confidence knowing you can opt out at any time.

Real-time Credit Monitoring

As the credit repair company works on your case, you will want to make sure you are able to monitor the improvement. Many services offer real-time credit score tracking through your browser or in an app.

Financial Resources To Help You Restore Credit

While a credit repair company is limited to what they can fix, they should provide you guidance on how to fix the rest. Look for a company that has educational resources or financial tools to help you make sure you are best managing your finances to maintain a healthy credit rating.

RepairCreditQuick Connects You With a Credit Repair Company That is Right For You

If after reading this article you would like to learn more about credit repair services, consider letting us connect you.

At RepairCreditQuick we partner with top credit repair companies such as Lexington Law and CreditRepair.com. We will provide you with a free credit report and our free consultation will match your credit situation to a repair company that specializes in repairing your issues.

For your free, no-strings-attached consultation, reach to one of our agents today.

Leave a Reply

Your email address will not be published. Required fields are marked *