Credit Restoration
Often called credit repair, this service can help you dispute errors on your credit report that may be hurting your scores. Errors can include missed payments, incorrect addresses, accounts that have been closed or merged with another account and more. If the disputed information is removed, your score will likely rise. However, it is important to note that credit repair cannot remove accurate negative items from your history. These may be the result of delinquent debts, bankruptcies or foreclosures and they will stay on your credit report for a certain period of time.
Credit Restoration is a service offered by for-profit companies that claim to be able to improve your credit score by removing inaccurate negative credit items from your credit report in exchange for payment. This process is legal at the federal level and in most states. However, it is not a quick fix and should not be considered a replacement for good financial habits like paying your bills on time and reducing your utilization of available credit.
In addition to hiring a credit restoration company, you can also work on your own to improve your credit. Start by disputing any errors on your credit report with the credit bureaus and information furnishers directly using their respective dispute forms. You can find these forms on the Consumer Financial Protection Bureau’s (CFPB) website.
Credit Restoration – What Is It & How Can It Help Me?
You can also take steps to improve your credit in the long term by paying down delinquent debts, lowering your utilization of available credit and keeping your credit report updated. These actions can help you achieve a better credit score and build a stronger financial foundation for the future.
In many cases, the services that credit restoration companies offer are identical to those you can do on your own for free. It is important to be wary of any company that claims to have the ability to fix your credit overnight or for a fee. These firms will most likely use illegal or misleading tactics to charge you significant fees and will not be able to provide a better solution than what you can accomplish on your own. If you are unsure of how to proceed, you can always consult with a licensed credit counselor who can take a look at your full financial picture and create a strategy for helping you achieve your credit goals.