When posed with the question of “what is credit repair” people will give wildly differing answers. The truth is that credit repair services are misunderstood and there are a lot of stereotypes about what credit repair is and how it can help those with poor credit. Here, we aim to define credit repair so that you know if and when you need it as well as tell you what credit repair is not so you don’t go in with jaded thoughts about what a credit repair company can do for you.
What do Credit Repair Companies do?
The first thing that any credit repair company will do is pull your credit reports – from all three credit bureaus – and attempt to find anything on them that shouldn’t be there or that is reported incorrectly. This happens more often than you might think and by disputing the errors to have them removed, you can repair your credit quite a bit. A credit repair company can help with this process.
How Does a Credit Repair Company Actually Repair Your Credit?
It is your right to have a credit report that is an accurate representation of your financials, completely fair, and every account listed on the report should be completely substantiated by those who reported it. A credit repair company will look at every financial account listed on your reports to make sure they fit all three of your rights. If they don’t, they will fight to make sure they are removed or changed to be an accurate representation of what happened.
Does a Credit Repair Company Offer Additional Services?
There are some credit repair companies that can help you not only repair the issues that are currently bringing down your credit but help you learn what to do to manage your financials in the future to keep improving it. Financial coaching if you have goals such as owning a new car or home, credit coaching if you have further credit building to do, or debt management coaching, if you have credit cards or loans to pay off, may all be offered to you as a part of your credit repair services.
Because the term “credit repair” is so misunderstood, it is important to realize that while a credit repair company can help you repair your credit to a point, and can help you learn how to do manage other aspects of your credit, some things may still be your responsibility if you really need to repair your credit. However, credit repair can set you on the right path to a better financial future.