What does "credit repair" mean?
Credit repair is the procedure of attempting to correct your credit score through the use of a credit repair agency. To prove your position on your credit rating, you should provide a thorough explanation of your debts as well as supporting documentation.
What is a credit repair agency?
A credit repair organisation is an organisation that assists consumers in dealing with and improving their bad credit scores. Consumers may lack the necessary knowledge and/or time to file their disagreements for a credit rating correction. Credit repair agencies can assist such consumers in filing their disputes. It is recommended that you check the legitimacy of a credit repair agency before entrusting them with your private details. According to the Federal Trade Commission, there seem to be a number of unlicensed agencies that intend to defraud customers.
What issues can occur with a credit information report?
There are two types of problems that can cause errors in your credit report:
- incorrect information stored in your credit history and credit report
- Missing a payment can have a negative impact on your credit report for the following reasons:
- financial difficulty.
- missed credit card payments as a result of domestic or international relocation.
- Charges or annual fees are disputed with the lender.
- Failure to receive a card statement, resulting in missed payments.
- Disagreements with the lender due to fraud
Things to remember
- A credit repair company can easily remove or modify documents from your credit report.
- On the internet sites of credit rating agencies, the dispute is free of charge.
- Any changes to your credit history must be approved by your bank or financial institution.
- Even if you apply for credit counselling through a credit counselling agency, the final credit report is sent only to the consumer's email or postal address. The information is private and will not be shared with anyone else.