Credit repair is the process of improving a poor credit score by addressing or removing negative items that could be listed on your reports inaccurately. Although the Fair Credit Reporting Act outlined the right for Americans to have accurate credit reports, credit reporting agencies require you to navigate complicated online systems and send a series of formal dispute letters in order to fix your credit.
While you can repair your credit on your own, navigating the process could become tricky if you have multiple errors on your report. If this is the case, hiring a credit repair company can help.
Takeaway: Credit repair is the process of fixing and restoring poor credit and can be done on your own or with the help of a credit repair company.
Credit repair is a multistep process that focuses on auditing your credit report and finding and disputing errors. Here are the basic steps we take to repair your credit:
Credit repair is useful when your poor credit score is preventing you from qualifying for a mortgage, car loan or any other qualifying line of credit. When you have a low credit score, you’re often hit with higher interest rates and finance charges. Repairing your credit can help you qualify for a competitive rate while lowering the amount of interest you’ll end up paying over time.
The good news is bad credit doesn’t have to follow you for life. Taking the needed steps to repair your credit and maintain healthy financial habits can help restore your poor credit.
Unfortunately, there’s no way to predict how long it will take to repair your credit, as every credit report is unique. Credit bureaus are required to respond and resolve credit disputes within 30 days—sometimes 45 days in special circumstances. Though that seems like a short timeline, the average consumer may have multiple errors that need to be disputed, so it could end up taking anywhere from three to six months.
If you’re disputing the errors yourself, you’ll need some time to download and review your reports, gather all necessary financial documentation and draft the actual dispute letters. Once those are submitted to the credit bureaus—either by mail or online—the typical 30-day process will begin.
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