CREDIT REPAIR, sometimes referred to as credit repair litigation, is when a third party, usually called a credit repair company or similar credit services company, seeks out damaging information from your credit report in exchange for money to remove it. These firms are mostly for-profit and their main services are sold as being capable of helping people improve on their credit scores. But how do they achieve these lofty credit scores? What does the process involve?
The primary goal of credit repair companies is to “get” the negatives on your credit reports. They do this by disputing the items in question with each of the three major credit bureaus. Each bureau has its own process for dealing with inaccurate information, which can take several forms. For example, if the item comes back as a negative, but the person responsible for setting it up (the creditor) failed to note the error, the credit repair company will challenge that discrepancy. If the creditor’s failure to note the error is due to a technical glitch, the credit repair company can make that error magically disappear through some magical formula.
To make matters worse, the credit repair organizations are not always open about what tactics they use in their tactics to raise your credit scores. They refer to their practices as “standard” or “customary” techniques, but some of these companies actually place ads on television see this advertising their services, despite stating otherwise. In other words, you may be unaware of their tactics, so when you see one of their commercials on TV, ask yourself what sort of poor credit reports they are referring to.
To the credit repair customers, these deceptive tactics are disappointing and downright disappointing. They argue that the credit bureaus are not doing anything to help these people because they are only focused on making more money from these people, and not really helping them get back the good credit information that they deserve. There is a bit of truth in this, but the credit repair organizations know this, too, and they use this information to their advantage when negotiating with the credit bureaus.
If you want to dispute inaccurate information on your credit report, all you have to do is send a dispute letter to each bureau separately. Then, you should contact the company who placed the information incorrectly, explaining your concerns in detail. The company will ask you to validate the item that is inaccurate, and then it will ask you to remove it. You must remember that the credit repair company is never obligated to remove inaccurate information permanently. They only have the authority to ask you to remove it temporarily, which should give you plenty of time to work on correcting the issue.
With this method of dispute working, you should expect to see results shortly. In many cases, a credit repair company will send you a letter to notify you that the negative items have been removed. In many cases, the negative items may never be removed, but you can be sure that you are not going to continue to be harassed by the credit bureaus if you choose this route. Another thing you can expect to happen is that your credit rating will begin to improve as soon as the negative items are gone. After you have gained back some control over your finances, you can start working towards financial freedom, which is always a good thing to pursue once you are financially stable.