Think about your credit score for a minute. What does it mean to you? For most people, their credit score is a reflection of their financial responsibility. It can dictate whether you’re approved for a loan, how much you’ll pay for insurance, and even if you can get a job. It’s not surprising that many people turn to credit repair companies when their scores drop. But what do these companies do? And should you invest in them?
When Do You Need Credit Repair?
There are several reasons behind low credit scores. Maybe you missed a few payments or had an account go to collections. Perhaps you applied for too much credit in a short period or have a lot of debt compared to your income. If your score falls below 680, it’s time to start thinking about credit repair.
What Do Credit Repair Companies Do?
At their core, credit repair companies help remove negative items from your credit report. This can include late payments, collections, bankruptcies, and more. The theory is that removing these items will increase your score. And while eliminating errors helps, it’s not always as simple as that.
How Does the Credit Repair Process Start?
Start by ordering your credit report from the bureaus. You’re entitled to one free report from each bureau every year. Once you have your reports, look them over carefully and dispute any errors you see. You can file for disputes and grievances through mail or call.
If you notice grave errors on your report, the credit repair company will contact the creditor and dispute the error on your behalf. The creditor then has 30 days to investigate and correct the error. If they don’t or can’t verify that the error is accurate, it must be removed from your report.
What if There Are No Errors on My Credit Report?
If you find no errors on your credit report, the credit repair company may still be able to help by negotiating with creditors to have them remove negative marks from your report. This helps, especially if you have a history of late payments or other negative items.
The credit repair company will work with you to create a plan to improve your credit score. This may include making on-time payments, paying down debt, and correcting any errors on your credit report. The company will also provide resources and advice to help you rebuild your credit.
It’s important to remember that repairing your credit is a process that takes time. While companies can help you improve your credit score, there is no quick fix for bad credit.
If you’re hiring a credit repair company, remember to do your research. There are many scams, so choosing a reputable company that will work with you to improve your credit score is essential.
Philadelphia, PA, residents looking to improve their credit score can do so with the help of Trifecta Credit Solutions. Our team is dedicated to fixing your credit rating and increasing your credit score. We offer a free consultation so that you can learn more about our process and how we help achieve your financial goals.