How Do Credit Repair Companies Work?
Credit repair companies typically request and review your credit report from the major credit bureaus (TransUnion, Experian and Equifax), create and execute a plan to fix any discrepancies, and recommend other ways to improve your score.
Each company’s methods and steps vary, but we’ll break down what to generally expect from most companies.
Review Your Credit Reports
When reviewing your credit report, credit repair companies typically look for credit report errors like:
- Accounts that don’t belong to you
- Duplicate accounts
- Incorrect inquiries
- Inaccurate accounts
These inaccuracies can unfairly take a toll on your credit score. Periodically reviewing your credit report helps you catch these inaccuracies before they affect your score.
Credit repair companies know what to look for and can save you the time and effort needed to review each report line by line.
Dispute Discrepancies
Next, credit repair companies initiate credit challengsfor all of the errors found on your credit reports. By submitting a dispute, you’re requesting the credit bureau review the accuracy of the information on your credit report. The bureaus are required to either correct or remove it if they’re unable to verify it.
Credit repair companies can save you time and ensure you’re doing things right by helping you identify and gather the evidence needed. They also help you manage and craft correspondence with the credit bureaus and creditors