What You Should Know About Credit Report Repair

A credit report is a powerful piece of paper. Lenders look at it closely when deciding whether or not to give you a loan. Insurance companies can use it to determine your rates or whether they will cover you at all. Employers can access it and use it as a factor in offering you a job or promotion. With that much significance placed on your credit report, it is absolutely essential that the information it contains paints you in a good light.

One of the credit report repair secrets that companies are selling is information about obtaining your credit report. Some companies charge for credit report repair information, giving you what amounts to helpful hints; where to get your credit report; how to write a letter and other so called credit report repair information that you can find on your own for free. If you have any “proof” that the information is inaccurate, (statements, cancelled checks, the “proof” depends on the individual item) list it here and enclose a copy of this material with your credit report repair letter.

Credit report repair companies require an installment payment in the beginning and a monthly competitive fee thereafter. Not surprisingly, Equifax, Experian and Trans Union do not approve of credit report repair companies. Acting on your behalf, the credit report repair service takes your credit report, and using the fair credit reporting act and planned strategies, dispute any negative item on your credit report history that you have selected. Some companies may even offer an upgraded service to continue monitoring your reports for other negative damage to come. This option of credit report repair is far more expensive but is not as time consuming or nerve racking as filing and handling the disputes yourself.

Don’t fall for the ads that claim an agency can erase bad credit from your report. The only thing by law that can be changed on a credit report is inaccurate information. If you have had a bankruptcy, the only thing that will legally remove it from your credit report is time. Credit repair agencies charge anywhere from $400 to $2000 for their services and the reality is they are not doing anything that you can’t do for yourself. For $30 you can obtain a credit report that lists your history with all three credit bureaus. The rest of the investment in cleaning up your credit report is in the value of the time it requires.

If you really don’t want to repair your credit by yourself, you can pay a credit repair company to do it for you. Be careful though. There are many credit repair scams out there that you need to watch for. I don’t recommend paying a credit repair company, because you are at a higher risk for identity theft by giving strangers your personal information. If you really want to pay a company, make sure you do proper research and investigate these credit repair companies before diving into it too fast.