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:
i. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies.
Errors could range from mistakes in reporting from lenders to simple inaccuracies in your personal information. A good amount can actually effect your credit, so if you believe there are errors in your credit report, you can benefit from one of the best credit repair companies correcting those errors for you.
If an item on your credit report does not meet this criterion, then the credit bureaus must remove it! Any derogatory items that prove to be either inaccurate or not verifiable have to be completely removed your credit report.
If Your Errors Can’t Be Verified
A little-known fact about your credit report is that every detail in the report needs to be verifiable. For example, if you have a negative item on your credit report from a lender that went out of business and a credit bureau calls to verify the information on your report, they would get no answer. When this happens, the law requires the bureau to remove that item from your credit report. This is a loophole that our credit repair services will use to raise your score.
i. Little known fact: The bureau MUST verify the information or you can file a complaint with the Consumer Finance Protection Bureau against them.
If Your Lenders Negotiate
The credit repair agencies like Wholesale Tradelines that have been doing this for a while know the best approach for this strategy. They have the experience to negotiate with your lenders on your behalf. But don’t count on this! Some lenders just aren’t willing to negotiate. For the lenders who are willing to work with you, this is an effective way to raise your score.
There is no way that we can guarantee credit repair will fix everything wrong with your credit score. However, if you pick a company with a good reputation and a proven track record, you’ll avoid being burned. Now that you have a clear understanding of how credit repair works, you are a small step closer to your credit goals.
Choose a Proven, Effective Credit Repair Company
With over five years of relevant credit repair experience, WholesaleTradelines provides fast, effective credit sweeps. You’ll receive your first round of improvement in 30-45 days or less. We achieve these results using aggressive but 100% legal and FCRA-compliant strategies that we have fine-tuned with over 1,000 clients. Unlike other companies that use sleazy tactics, require you to do all the paperwork, or only get temporary removals, we are certified credit experts who have developed a paperwork-free system. We’re so confident that we can provide results quickly that we give you access to our client portal. The portal gives you real-time updates on our progress and allows you to track your credit improvement. No hold times or vague answers. Our process is fully transparent. Ready to take a giant leap toward your financial goals with better credit? Get started.
Written by Val Singles