What does credit repair include?

Credit repair is the act of restoring or correcting a poor credit score. Credit repair may also involve paying a company to contact the credit bureau and point out anything in its report that is incorrect or false, and then requesting that it be removed. A credit repair company is an organization that offers to improve your credit for a fee. Credit repair is the process of hiring a company to correct your bad credit by removing inaccurate and negative information from your credit reports.

Credit repair refers to the process of contesting errors and errors in your credit reports. Each credit bureau (Equifax, TransUnion and Experian) maintains its own proprietary version of its credit report. Credit bureaus strive to keep information accurate, but errors can occur. Adding these services allows Credit Versio to track any changes to your credit report in case you need to send more dispute letters.

The company's free consultation is available in English and Spanish, something that is not common in the credit repair industry. Take advantage of this offer and check your reports for errors, if any, dispose of them or consider hiring a credit repair company to do it for you. The Fair Credit Reporting Act (FCRA) allows you to file a dispute as long as you disagree with any information that appears on your credit report. In light of COVID-19, the NFCC has joined forces with credit counseling agencies across the country to create a new program geared toward emergency credit card relief.

Accredited credit repair companies will clearly publish their prices and services, so that consumers can select the right package for their needs. And if you avoid credit repair because you're worried about scams, you could lose the opportunity to easily improve your score. This could save you some money on initial fees, which most credit repair companies charge every time you start using the services. With the subscription fee structure, the credit repair company has a financial incentive to keep you as a paying customer for as long as possible.

As long as you review those three reports regularly and make sure they don't contain errors, you can usually present the best possible credit profile when someone checks your credit. Credit repair software and online applications help identify potential errors and make disputes. One of the agencies that oversees the industry is the Consumer Financial Protection Bureau (CFPB), a federal organization that protects consumers from fraudulent or abusive practices by banks, lenders or any type of financial institution, including credit repair companies. Credit repair companies often charge hundreds or thousands of dollars in fees for services (without guaranteed results) that consumers can do themselves for free.

If you find yourself on the target of an ad for a credit repair company, be careful when taking your promises to the letter.

Gwen Dasilva
Gwen Dasilva

Entrepreneur. Proud coffee advocate. Wannabe music fanatic. Certified twitter enthusiast. Coffee geek.