Will My Credit Score Be Impacted by Using a Credit Repair Company?
If you are concerned about your credit score, you may be considering using a credit repair company to help you. This may cause you to ask, “Will my credit score be impacted by using a credit repair company?”
Yes, your credit score can be impacted by using a credit repair company. If you use a credit repair company that does not follow the law and does not have your best interests at heart, it is possible that your credit score could be negatively affected.
However, if you work with a reputable credit repair company and make all of your payments on time, then there should be no negative impact on your credit score.
How Credit Repair Companies Help Repair Your Credit Score
Credit repair companies are beneficial if you need help cleaning up your credit. While it’s true that using one can impact your score, it doesn’t mean that they won’t improve your situation.
A reputable credit repair company not only optimizes your credit reports and scores and helps you understand why your credit scores are low in the first place so you won’t make similar mistakes in the future.
A good credit repair company works with you to identify any mistakes or inaccuracies in your reports and works with the creditors to correct these errors. They also check for other possible issues such as identity theft or fraud that could affect your score and help resolve them.
Credit repair companies help:
- Remove inaccurate information from your credit report
- Dispute errors in the data reported by lenders
- Fix errors in public records that have been reported inaccurately for years
What Is Credit Repair?
Credit repair is a service that helps you repair your credit report and improve your overall financial situation. This process usually involves removing negative information from your credit report, such as late payments or collections accounts.
Once you remove negative information from your credit report, your credit score will improve, and it will be much easier for you to find financing for new purchases or even refinance an existing loan. It also gives lenders confidence that they are loaning money to someone who will repay them on time and in full.
How Does Credit Repair Work?
Reliable credit repair solution providers first obtain your report from the three major credit bureaus (Experian, Transunion, Experian) and review it. They check for errors and negative items to determine what can be fixed and let you know if they can help improve your credit score.
Reputable credit repair agencies assess your credit report to determine if they can use dispute resolution or debt settlement to help improve your score.
Dispute resolution involves contacting each of the three major credit bureaus (Equifax, Experian, and TransUnion) and asking them to remove inaccurate information from your report. If an identity thief takes on credit using your name, you will be prompted to provide supporting documents to dispute the report.
You may need to provide credit repair companies with documents supporting your dispute. As per law, the bureaus need to investigate your case within 30 days of disputing. They will contact the creditors and share your dispute letter with them together with the supporting documents. If they can’t find the creditor or the creditor fails to validate a credit report, the credit bureaus will be mandated to remove the report.
Debt settlement involves negotiating with creditors directly to pay less than what is owed on your accounts. If the creditor agrees to a payment plan, ensure that you pay on time, and you will see your credit score improve. Once the creditor agrees, they can remove the credit account from your credit report.
Taking Charge of Your Credit Score
This is how best to increase your score:
- Check your credit report regularly and dispute any negative information. Get a free copy of your annual credit report from one or all three major credit reporting agencies (Equifax, Experian, and TransUnion) every 12 months at AnnualCreditReport.com.
- Check for errors on an ongoing basis by requesting reports from each bureau every few months. If there are mistakes in your report, contact each agency to fix them.
- Pay off old debt and reduce the debt-to-income ratio. If you’re carrying high balances on various accounts, try paying them off one at a time, so they don’t drag down other accounts with higher limits or interest rates.
Our Bottom Line
If you have bad scores and no idea what went wrong or how those mistakes occurred, then a credit repair company will be helpful. They work with you to determine what needs fixing and help get everything back on track again for you to qualify for loans or other financial products in the future. However, ensure you only use reputable credit repair companies like The Ascent Network. Any credit repair company that assures you they can remove any negative report from your credit report is a scam and will only impact your credit score negatively.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.