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What Is Credit Repair?

Credit Repair Some of us out there have the mind to take stringent care of our credit scores. Our credit scores are much more important than we often realize, and they can be a make or break factor in our lives often.

Credit scores can have an effect on our ability to take out a loan, get a mortgage, and so on. Having a good credit score is important for our financial lives and achieving the dream of financial freedom. However, for some this dream seems pretty far off.

If you are looking to repair your credit score, then you may be looking into how credit repair can help you do so. There are services or ways you can do this yourself.

But, first of all, what is it?

You might also ask how do tradelines work, but to start we want to focus on what exactly credit repair is.

The Basics

Credit repair is basically just fixing your poor credit standing which could have gone down over time for any matter of reasons, it could be debt, or financial problems, income issues, or otherwise.

The process of repairing your credit can be super simple, or a bit more drawn out, depending on how damaged your credit is. It can be as simple as just disputing any information that is mistaken or incorrect with the relevant credit agency.

However, if there are any cases of identity theft, and damage that has occurred as a result of the theft, then this can require even more extensive work on repairing your credit.

That being said, there are other forms of credit repair as well. This can include dealing with the most key issues in your finances. This can include creating a stringent budget and being more strict with spending and money management.

Address legitimate and real concerns on part of potential or current lenders.

There are plenty of ways you can deal with repairing your credit, these are just some of the ways, and in some cases, you could adopt all of the above simultaneously to cover all issues with your credit and ensure your credit standing raises to what it should be.

Credit Repair How Does It Work?

So, now we know what it is, but how does it work? Well, although there are plenty of companies who claim that they can correct and clean a bad credit report by collecting and correcting information, this will take a lot of time and effort.

This is why these companies exist, as while you could tackle this, it could take ages.

Do remember, however, that details which have been cited by a credit reporting agency are unable to be removed by any third party.

What can be done, is the removal of incorrect or misrepresented information, so that the credit report instead reflects realism. You are allowed a free report on your credit once per year from agencies.

If you believe there is an issue, you can also file a report against them, and this will allow you a free report. If you find that there is incomplete or incorrect information on your report then you can file a dispute against them.

While this is useful, and you can correct mistakes and wrongs on a credit report such as fraud and rebuild your report, in some cases repairing your credit can actually focus more on being cautious with your use of credit and activity financially.

It is not something we always want to hear, but it is the truth. Only we are responsible for our credit usage and how we act with our finances.

Are Credit Repairing Services Legitimate?

So, should you use credit repair services? Well, this is your own choice really. There are many businesses that will make claims that they can help in doing repairs on credit over time.

There are others who will offer services to assist you, although the results of their efforts can be questionable.

Credit repair can require legal assistance as well as expertise in finances.

While not every case will require a professional to assist you, there are cases in which it may be needed. In many cases though, it may just need a good cleaning and clarifying of any misunderstanding.

Do be aware that these companies will charge fees, and these costs can vary depending on the services and extent.

You will usually face a set-up fee and a monthly fee for the services of a credit repair company.

If you choose to use them, it can help, but not for everyone.

Image Credits:

Image 1: Image from QuoteInspector

Image 2: Image by Marco Verch on Flickr

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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 7th May 2022.

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