Having a good credit rating is essential for many aspects of life, from getting a loan to renting an apartment. Unfortunately, if your credit report contains errors or a history of debt problems, it can be difficult to get the credit you need. Credit repair companies offer to “fix” your credit by removing negative elements from your credit report, but is this really the best way to improve your credit score? Legitimate credit repair companies can help ensure that inaccurate information is removed from your credit reports so that it doesn't harm your credit score. However, they can't do anything for you that you can't do for yourself if you're willing to put in the time and effort.
Unfortunately, many of the promises made by these companies are false. They may offer to file disputes about negative items on your behalf with the credit bureaus and have them eliminated, but this approach is based on taking advantage of a loophole in the credit system. When precise items are removed, it is only temporary, at best, for a few months. Historically, mail has been the preferred method for credit repair companies for several reasons.
They often charge a subscription fee and have a financial incentive to keep you as a paying customer as long as possible. Credit repair is rarely a quick process, so be prepared to pay for the service for at least a few months if you go that route. Most companies operate on a monthly fee, which is charged for each month they work on your behalf. If the information provider believes that the item is inaccurate, you must notify the three credit bureaus and request that the item be removed from all your credit reports.
Brittney is a credit strategist and debt expert with years of experience applying her deep knowledge of the credit and personal finance industries to write comprehensive, easy-to-use guides to products and strategies that readers can use to make smart financial decisions throughout the credit-building process. As with many things in life, you can do credit repair yourself or hire a professional. Keep in mind that there's nothing a credit repair company can do for you that you can't do on your own. And finally, they cannot compel or incite you to sign a waiver whereby you would waive some or all of your rights.
By law, you are entitled to receive a free credit report every 12 months from each of the three major national credit bureaus: Equifax, Experian and TransUnion. If a company promises to remove a specific number of items from its reports, it may be worth investigating their reputation further or opting for another option. The best way to achieve successful credit repair is to know what to expect from the process before you begin. Once you have an Employer Identification Number (EIN), you'll be instructed to apply for new credit with it so you can create a whole new credit history.