Many credit repair companies advertise their services like they will cast some spell on your credit report and all the unwanted information will disappear no time. This is not how it works. In fact, most of the people looking for credit repair services have the following two questions to ask:
- Does credit repair work?
- How does credit repair really work?
The answer to the first question is yes.
When it comes to the second question, we need to give a long explanation. Don’t worry. It is not boring. Let’s see how this works.
Reviewing Credit Repair
Your credit report reflects your financial behavior. If you are paying off your bills, balances and loans on time, this report shows you as a responsible borrower. Similarly, if you are putting your bills on the backburner, this report reflects late payments and other negative information which is not good for your credit score. If your credit score has taken a nosedive, find out why this has happened. Review your credit report and find out the negative information contributing to your low credit score.
Is There Any Entry That Can Qualify For Dispute?
A credit repair company can help in removing some negative information. However, this does not work for every negative entry. It is your right to remove inaccurate negative information from your credit report. However, if the negative information is accurate, you have to follow a different approach.
So, in simple words, you need to find errors or inaccurate information and dispute it. You cannot remove false information without disputing it. Report incomplete or inaccurate information to credit bureaus. After investigating your dispute within 30 days, changes are reflected in the report. However, credit bureaus not even consider frivolous disputes.
Entries You Can Dispute
You should have realistic expectations if you are going for credit repair services. Unrealistic expectations often lead to disappointment. So, it is important to be aware of the items you can dispute successfully. Credit repair is all about ensuring that your credit report shows accurate information. You can dispute and remove the following four items:
- Outdated Information
- Unsubstantiated Items
Look for errors in your credit report. Errors are very easy to dispute and remove. You can look for some basic errors such as spelling mistakes, misreported amounts etc. These basic errors can cause credit problems. The decimal point in the wrong place can make a big difference. Now your credit report is reflecting more debt to pay. If it is a simple mistake, the credit bureau can investigate and fix it in a short span of time.
Outdated items are also easy to dispute and fix. Whether it is a bankruptcy, late payment, or unpaid debt, negative information stays on your credit report for a specific span of time. For example, hard inquiries stay on your credit report for up to two years. Delinquent payments are reflected for up to seven years. A Chapter 13 bankruptcy stays on your credit report for seven years. A chapter 7 bankruptcy is deleted after 10 years. Once that time has expired, you can dispute outdated items and get them removed.
In case you have fallen victim to identity theft, you can close fraudulent accounts and get related information removed from your report. Fraudulent accounts seem to be legitimate accounts. However, the sinister origin of these accounts is unveiled after investigation. First of all, file a dispute and then report the case of identity theft right away.
In case the creditor or lender is unable to show that reported information belongs to you, you can dispute these items as well. The credit bureaus will remove these items after investigation.
Now you know how does credit repair work, don’t believe in anyone making false promises. It is not possible to remove accurate negative information by disputing it. However, you can request the information reporter to instruct the credit bureaus to remove the information he has reported.
You might have heard about credit score and credit repair but some insights are definitely worth noticing. Before hiring a credit repair specialist in New Jersey straight away, gain something useful. Diving into the details of anything that significantly alters your standard of living is a must. Let’s look into some facts intriguing enough for anyone to begin his credit journey from scratch.
No matter what amount of credit score you own, it’s definite that everyone must ask for a credit report once a year. Analyze it thoroughly to get an idea where you went wrong and where you didn’t. Mentioned above facts will help you determine your position in any respective portion of the population and what quality of fast credit repair services will be required.