What Is A Credit Repair Company?The aim of these services is fairly straightforward; they plan to remove all negative items from your credit report to make you a more favorable candidate for lenders. These companies work with all types of credit issues such as foreclosures, repossessions, late payments and more, with the eventual aim of fixing your credit score. Credit repair services are a relatively new innovation in terms of borrowing history, as in the past any problems with your credit file were your responsibility. As many people are unaware of the ins and outs of the financial world, they simply accepted their poor credit score and waited the many years required to improve it back to a decent level.
How Do They Improve Your Score?So, how exactly does a credit repair company make your score better? There are usually a few steps involved that all decent credit repair companies take in order to clear your file and make you a better candidate for financial assistance.
- The credit repair company obtains a report from the relevant providers including Equifax, Experian, and the TransUnion.
- The service looks through your file to see potential issues which may cause a lower credit rating.
- Your credit repair company will file disputes on the items on your behalf using a number of techniques that insiders are aware of, and ones with high success rates.
- The company then speaks with credit bureaus and other creditors to remove the negative items and improve your score.