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What is a Credit Repair Agency? Everything You Need to Know

According to the Federal Trade Commission, a whopping 34% of people have errors on their credit reports. This is where a credit repair agency can act as your first line of defense for your personal finances. If you have less than perfect credit, suspect errors, or need to improve your credit quickly, you’ve come to the right place.

From how a credit repair company works to what they do, we have all the answers to your questions. We’ve rounded up credit repair basics, tips for improving your score, and more. Let’s jump in and see if a credit repair company is the right fit for you.

What Does a Credit Repair Company Do?

A credit repair company assists clients in fixing their credit scores. This is done in several ways. The main service provided is removing errors from your credit report.

If something has been inaccurately reported on your credit report, it could be dragging your score down. While these companies can’t erase all the negative reports on your credit history or significantly reduce your debt, they can make a big difference in a short time.

A credit repair company can call your creditors on your behalf to negotiate a negative report, verify the report, and also remove an error. While any individual can try this independently, it’s a time-consuming process that’s difficult to start without professional knowledge.

Credit Repair Solutions to Save You Time and Money

Your time is valuable. While there is an expense to using credit repair services, these professionals can help make fundamental changes to improve your score. Your time is too important to spend it spinning your wheels trying to fix it yourself.

Their experience allows them access to companies and creditors they call on daily. Unfortunately, finding this information on your own is difficult if you don’t know where to start.

A credit repair agency can also call a creditor to verify negative information. If this information isn’t verified within 30 days, it could be removed from your report. Over time, removing these negatives on your behalf will increase your score. 

How Does a Credit Repair Agency Improve Your Credit?

If your credit is less than perfect, time can do wonders. For those with low credit scores, remember that your credit score isn’t a fixed number that you’re stuck with for eternity. Instead, your credit score will go up and down over time. 

Paying down your debt, not opening any new lines of credit, and staying well below your credit limit will boost your score or keep it high. Using a credit repair agency to remove negative information, find errors, and negotiate on your behalf could help your score improve a lot sooner than it would on your own.

The fewer negatives, missed payments, and the debt you have on your report, the higher your score. The less debt and negative remarks, the higher your score will be. This is where a credit reporting agency is a lifeline to help restore your credit quickly.

Instead of taking years to wait out negative reports, pay down your debts, or settle or remove information on your own, you have someone working in your corner. You’ll have a dedicated credit expert working to repair your credit, fix errors, and negotiate better terms.

What Are Common Errors on Your Credit Report?

There are pages of information to look through on a credit report from previous addresses, names, creditors, and accounts. Unfortunately, this means there is often room for error in your report. However, if you aren’t checking your credit score regularly, the errors will go unseen. 

A credit report could contain inaccurate names, previous addresses, addresses that aren’t yours, and other personal information that doesn’t match up. This could lead to credit reporting that also isn’t accurate. For example, you may have bills past due that aren’t yours but are associated with your name or previous address, dragging down your score.

Other errors may include accounts supposed to be in forbearance that show past due. For example, you may think you have a pause on a student loan, only to find the account isn’t listed as current on your report. Again, a credit reporting agency spots the errors and understands the steps needed to fix them.

What Can Bring Down Your Credit Score

A credit score is made up of several factors. First, your score is calculated by considering your credit history, if you’ve made your payments on time, and your credit utilization ratio. This ratio refers to how much credit you’re using in relation to your available credit.

Let’s say you have a credit limit of $3,000. If your credit card bill reaches $2,999, you’ve almost maxed out your credit card. This means you have a high credit utilization ratio in relation to how much credit you have. To a future lender, if you’re using a lot of your credit, this is a red flag for financial trouble.

The length of your credit history will also factor into your score. If you’ve had an account in good standing for a long time, this will reflect positively on your score. 

Making your payments late will also drag down your score. Eventually, your account will get deferred to a collections agency and reported on your credit. The more often this happens, the lower your score will drop. Making your payments on time is critical to keeping your score up.

How Long Does It Take to Repair Credit?

So how long does credit repair take? Thankfully, a low credit score doesn’t stick with us for life. A credit score will go up and down depending on how you spend or save your money. The best thing for your credit history is time.

The longer time passes, the more negative information will eventually fall off. This timeframe varies greatly, however. Everything from a missed payment to foreclosure will come off your credit report. This is where a credit repair agency can help speed things up.

A credit repair agency can make calls and inquiries regarding your negative accounts to help get them dropped or removed from your credit history sooner. You won’t have to wait years for certain pings on your credit to fall off naturally.

Tips For Improving Your Credit Score

In addition to professional credit repair help, there are other ways you can improve your score while your report is being worked on. To start, make a plan to use your credit cards less. If debt or missed payments are part of the problem, it’s time to start making a budget.

A budget will help you manage what income you have coming in and what expenses you have going out. This will help make sure you can make your payments on time and that you aren’t overspending on credit cards. Keeping your balances low will help boost your score.

If you are having trouble making payments, see if there is anywhere, you can cut expenses. You may find you have a gym membership you thought you canceled years ago, or you’re paying for two streaming services you don’t use. Overspending can quickly cause you to miss payments or turn to credit cards as a lifeline.

If you see you’re unable to make a payment, or you’ll be late with a bill, reach out to your accounts. Many utility companies and other lenders are willing to work with you if they know your situation. While you can’t erase your obligations, they may have a deferment plan or another assistance program to help.

Start Fixing Your Credit Today: Where are Credit Repair Services Near Me?

If your credit score is dragging you down, it’s time to take action. Your credit score affects everything from your ability to get a home to landing a new job.

A credit repair agency will help you boost your score, remove errors, and negotiate on your behalf. Your time is too important to spend it spinning your wheels trying to fix it yourself.

If you’re ready to speak with a credit repair consultant about your credit, fill out the contact form here. You’ll be put in touch with a credit expert who will help develop a plan to turn your credit around. The sooner you start making changes, the sooner you’ll see your credit improve.

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