Credit Restoration Services That Really Work
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Credit Restoration

You apply for a loan only to find out that your credit score is too low and you've been denied. How could this have happened? You pay your bills on time, you don't over-extend yourself, and you even have some money stashed away for a rainy day. You're a financially responsible person. You want to get your life back. It's not supposed to be this way, but where do you start? Credit restoration companies are one option.

While the Federal Trade Commission acknowledges that you can contact the three major credit bureaus (Equifax, Experian, and TransUnion) to challenge any derogatory remarks, actually doing so might be difficult to do on your own. Challenging a derogatory remark (i.e. a creditor reporting that you don't pay your bills on time) is tough since you have to know what the law says about making a dispute. You must write a formal dispute letter, track all mail correspondence, respond to the credit bureaus when they request more information, and remain vigilant when you don't receive timely responses to your letters.

Credit Restoration Companies Simplify The Process

There's one thing that a credit restoration company can do that you can't: they can spend more time than you can on your case and they will remain vigilant in the face of opposition. When you hire a credit restoration company, you're basically hiring an assistant to take care of all of the details of your dispute for you.

The first thing a credit restoration company does is gather up all of your credit information. Usually, you will have to help the company with this since it won't have access to your credit file. You will have to obtain a credit report (you can receive one for free once per 12 months from all three major credit bureaus).

The credit restoration company will then analyze your report for errors. Sometimes, creditors report erroneous information. These errors can result in your being being denied credit, you paying higher insurance premiums than you need to, and they can even prevent you from getting the job you want. Restoration companies are experts at deciphering which remarks will cause trouble for you and which ones are innocuous or even beneficial.

Once a credit restoration company has figured out which remarks will make your life harder, it goes to work to try to remove those remarks. A company may hire professional lawyers (or may retain lawyers in-house) to draft professional dispute letters. Often, several rounds of letters are required before a negative remark is removed, but eventually your good credit will be restored.

Do Your Research

Not all credit restoration companies are the same. While there are some honest companies in the marketplace, there are also companies that overcharge and under-deliver. Never do business with a company that guarantees all negative remarks can be removed before they even look at your credit report. It's illegal for credit bureaus to report false information, and this includes the removal of any legitimate debt reporting or accurate negative remark on your credit report.

A good credit restoration company will also provide you with educational materials and financial strategies that will help you build good credit over the long-term. Beyond removing derogatory remarks from your credit report, a large part of credit restoration is financial education.

Your restoration company should be able to teach you how to effectively manage debt, credit cards, and create a simple budget as well as educate you on how to protect yourself from identity theft so that you reduce the risk of derogatory remarks in the future. Finally, be weary of companies that charge a fee up front without a signed contract or that require pre-payment in full for services. Instead, work with companies with flexible payment options and that bill you as work is completed.