Restoring Your Credit: Understanding and Navigating Credit Repair
Credit repair can be a daunting and confusing process, but with a few key steps and understanding of the process, repairing your credit is simpler than you may think. Whether your credit scores needs repair or you’re trying to build or maintain a strong of credit for the future, understanding your credit and the credit repair process will be immensely beneficial.
What Is Credit Repair?
Credit repair is the process of identifying, disputing, and resolving inaccurate or incomplete information on your credit reports. A credit report is a record of all your personal credit activity—from applying for credit cards and loans, to bill payment, to the success (or failure) of your payments. Your credit score is an important three-digit number used by lenders to determine what type of credit risk you are, and whether or not to approve you for a loan or a credit card.
The Benefits of Credit Repair
Credit repair can have significant positive benefits, both short-term and long-term. Improving your credit score can give you access to better types of credit and more favorable interest rates. Credit repair can also help you save money on large purchases such as a car or home, as well as help you qualify for insurance policies that you may not have qualified for before.
The Credit Repair Process
The best place to start when it comes to credit repair is understanding your credit report. A credit report is made up of all the information about your credit, including what type of credit you have, the amount of debt you owe, your payment history, and the amount of your available credit. You are entitled to one free credit report every 12 months from each of the three major credit-reporting bureaus: TransUnion, Equifax, and Experian.
Once you have obtained your credit report, the next step is to review the information, looking for any inaccurate or outdated information. Additionally, you’ll want to check for any possible identity theft that may have been committed.
The final step in the process of credit repair is disputing any inaccurate information on the report with the credit bureaus. Each of the bureaus allows consumers to dispute inaccurate information online, in writing, by phone, or through a credit reporting agency.
Credit Repair Services
Depending on your needs and goals, you may choose to hire a credit repair company or attorney to help guide you through the process. Credit repair companies often offer services such as personalized credit counseling and credit report dispute assistance. A credit repair attorney may offer more specialized services related to your financial situation. No matter which credit repair route you choose, it’s important to perform your research so that you are comfortable with the services being provided.
Navigating Credit Repair
Credit repair can be a complex process, but with the right knowledge and a dedication to improving your credit score, the rewards may be well worth it. Knowing your rights, understanding what goes into your credit report, and taking action to dispute any inaccurate information on your report is the key to credit repair and rebuilding your financial standing.
