Many don’t know how credit repair works but knowing the basics can protect you from obvious scams, and less obvious “credible” looking companies that string you along for months with little to show for it.
When you find out you have bad credit, it can deeply intrude on your life plans. If you are unable to qualify for the home loan you are hoping for, can’t sign for the car you want, or can’t complete that overdue home repair, you’re not alone. According to Experian, nearly a third of Americans have a credit score lower than 601 — the distinction between bad and fair credit.
As we’re sure you know, good credit means options, you’re more than likely to receive a variety of financial options, such as securing loans and credit, better interest rates, more housing opportunities, and even better work opportunities in some cases. But how do you get there? Let us help you understand how credit repair works.
Errors on Your Credit Report
The key function of any credit repair service is to remove errors from your credit report. In order for an account to remain on your credit report, it must be 100% accurate and verifiable.
The legal means that forms the basis for the credit repair process is a law known as the Fair Credit Reporting Act, or FCRA. Here is the law as described by the FCC: