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Repairing Your Credit: How Do Credit Repair Companies Work?

If you’ve been rejected for a credit card or loan, you’re not alone. More than half of Americans have been turned down due to poor credit.

If this sounds like the situation you’ve faced, you may be wondering what you can do to turn things around. One option you have is to team up with a credit repair company.

What do credit repair companies do, and how do they work? This guide has the answers. You’ll be on your way to a higher credit score in no time.

What Are Credit Repair Companies?

A credit repair company helps consumers like you improve their credit scores.

A bad credit score is not a life sentence. In fact, there are many steps you can take to improve your credit score or begin building one if you have no score. Some of these steps, you can take on your own.

Credit repair services help you with the trickier parts of rebuilding your credit.

How to Fix up Your Credit

Credit bureaus use several factors to determine credit scores. These include:

  • Payment history, such as late payments
  • How much credit you have vs. how much you’ve used
  • How long you’ve been using credit

If you’ve missed payments or only been able to make partial payments, it could affect your credit. You can often improve your credit by making on-time payments.

Credit Help from a Repair Service

Reporting issues can also affect your credit score. This is where a credit repair company becomes more helpful. There could be old accounts or errors on your credit report, which are dragging your score down.

Most accounts are removed from your report after a certain length of time. You may want them removed sooner. This is especially the case if there’s an error on the report.

Problems with credit reports can include:

  • Duplicate accounts
  • Accounts that aren’t yours
  • Inaccurate accounts from identity theft
  • Outdated information
  • Accounts listed as open, even when you closed them
  • Hard queries you did not approve
  • Information that should have been removed, but wasn’t
  • Missing accounts that could positively impact the score

Correcting any of these issues can help your credit score. It can be quite difficult for the average person to get these items changed on their credit report.

That’s where a credit repair service comes in. They conduct a credit clean up by getting the credit bureaus to change inaccurate information. They’ll track down duplicated accounts and press for the removal of outdated information.

In short, the best credit repair helps you make sure your credit report is as up to date and accurate as possible. That, in turn, means your score will be more accurate and likely higher.

Get an Accurate Picture of Your Finances

Credit repair companies make the process of cleaning up your credit a lot simpler. If you’re worried about a bad score, it could be time to get in touch with a credit repair service.

Looking for more information about rebuilding your credit or managing debt? You’re in the right spot! Check out the archives for more great guides.