The Confusion Around Credit Repair

A low credit score can make it difficult to obtain financing if you need it, or if your application for a credit card or loan is approved, you may end up paying a high-interest rate. If you’ve had credit problems, you may wonder what you need to do to fix your credit, and you may hear conflicting information from different companies. Let’s talk about the confusion around credit repair.

There Are No Quick Solutions

Not all companies that offer credit repair are legitimate. You may hear information that’s confusing or misleading, and it’s important to be wary of claims that your credit can be magically fixed overnight. It’s possible to rebuild your credit, but it will take time.

Before hiring a credit repair service, make sure you obtain clear information about what it costs and what services they’re providing. Consider whether the services they’re providing are things that you can take care of yourself. For example, you have the right to contact the credit bureau directly for any information on your credit report that is inaccurate.  You do not need to hire a service just for this purpose.

Red Flags That a Company May Be a Scam

With so many companies claiming to have the answer to credit problems, it can be hard to know whom to trust. Some signs that a company may not be legitimate:

  • Insisting on payment upfront, before they’ve provided a service
  • Representatives that can’t answer simple questions
  • Suggesting you create a new identity
  • Promised that accurate negative items can be removed from your credit report

Negative items such as delinquencies, collections accounts, and foreclosures stay on your credit report for seven years. Bankruptcy stays on your credit report for seven to ten years depending on which chapter you file. You can’t dispute items that are legitimate and expect them to be removed.

What it Really Takes to Fix Your Credit

If you have made credit missteps in the past, they won’t affect you forever, as long as you begin practicing more responsible financial habits. If you’re starting over, a good place to begin is a secured credit card or a credit builder loan.

The most important thing to do is pay all your bills on time. Accounts that are currently past due should be paid up as soon as possible and kept current going forward. Work on paying down credit card balances. The goal is to use less than 30 percent of your available credit. Avoid overspending and only apply for credit that you need.

To help improve your credit, be sure to thoroughly review your credit reports at least annually. Look for any information that’s incorrect. This could be as simple as a misspelling of your name or it could be more serious, such as an account that is reporting as paid late when it wasn’t. Accounts you don’t recognize or incorrect addresses could be a sign of identity theft.

Contact the credit bureau that is reporting incorrect information to have it corrected. Dovly is an AI credit engine that can help you dispute any errors you find on your credit report. Try it risk-free with our free membership tier. Get in touch with Dovly today.

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