Credit Repair Services

"Credit repair" is a broad term used to depict the process of rehabilitating a person's credit standing. This systematic process is typically initiated by requesting copies of the person's credit report. Once the credit report is received, it's scrutinized for errors, misleading information, omissions, and fraud. If any discrepancies appear on the report, a formal dispute can be issued.

A number of laws and regulations govern the credit repair process. In addition, a number of organizations called credit repair services help people navigate this often complicated process so they can clean up their credit. If you're willing to put in your own time, you can certainly repair your credit without the use of an outside credit repair service. Many people, however, would rather pay to have someone guide them through the convoluted process.

What You Can Do to Improve Your Credit Rating

A good bit of controversy has circulated around credit repair services and for good reason. Many of these services do little to help their customers. If you want to go with a credit repair service, beware of the ones that ask you to pay before any services are rendered and don't inform you of your legal rights and what you can accomplish for free. Also, I suggest steering clear of the companies that suggest creating a new credit identity.

Before you solicit a credit repair service and spend hundreds or even thousands of dollars, find out what you can do for free. First, get a copy of your credit report from the three primary agencies: Experian, Equifax, and TransUnion. Once you receive the reports, scan them for any negative items and dispute all of them. You have the right to dispute anything in your credit report.