When you hear people talking about credit repair, in most cases, they are talking about those organizations that charge a fee with the promise they will remove all the negative information from your credit report. One thing you need to know about these credits repair companies is they help people improve their credit score. However, before you can seek their help, you will need to know how credit repair works ,and if there is something you can do to improve your credit score.
Is there something you can do?
In case you feel there is information that is not accurate in your credit report, you can contact any of the three credit reporting bureaus to dispute that information without any fees. You can also dispute the information online, through the phone or even via email. A fast and easy way to dispute the information is doing it online.
There are no special rights that are given to credit repair companies when disputing information on the credit report. These are usually regulated by Credit Repair Organization Acts. Prior to making any payment for a service with an organization that promises to fix the credit, ensure that you understand your rights under the federal law. Here are some of the things that are required by the law.
- Should provide a contract that specifies the services to be provided
- Should allow 3 days for withdrawing from the contract
- Shouldn’t advise you to make some false claims or even alter your identity as this could make you to be charged with fraud
- should not take payments until the terms of the contracts have been fulfilled
- Shouldn’t promise to get rid of the accurate information from the credit report for some payment
How to improve credit?
One of the key factors in the credit report is to ensure that you are paying bills on time. In case you are trying to improve the credit score, it can be more beneficial to use the money that you would have spent on hiring to make the payment for any debt on the credit report, and ensure that all accounts that are past due are up-to-date.
After your account has become current, the key thing you should do is to ensure the payments have been made in time. You will also need to consider requesting for your credit scores from each of the three credit reporting agencies.
After getting your credit score, it will come with a wide range of elements in the credit report that is affecting your score. You can pay special attention to the list to determine the changes you would like to make further, and increase your credit score when going forward.
Why check your credit report?
Whether your credit is good or bad, this will depend on the credit report information. However, it can be hard look at the credit report, and determine if your credit report is in your favor or against you. This is why it is advisable to watch your credit score when trying to repair credit. If you have a low credit score, this will indicate a poor credit history that will need some work done. The improvement of your credit score will also show that your credit history is improving.
There are 5 factors that affect your credit history. These are the payment history, debit amount, age of credit history, your kind of credit account and the recent credit application. By improving credit in these areas, it will help boost your credit score.