Credit Repair Services

Written by Linda Alexander
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Not all credit repair services are scams. Certainly, anybody who promises to fix your credit overnight or charges an exorbitant fee to do so is probably trying to scam you. Lenders and mortgage lenders sometimes offer legitimate credit services that can help you get approved for a loan.

How Credit Repair Services Work

There are credit repair services that work with mortgage lenders to dispute mistakes or negative credit information on your behalf. Having errors removed from your credit report and allowing your credit score to be recalculated might result in a better credit score, which is used to approve you for loans. While these services cannot remove information just because it is negative, if there are errors or you are disputing something, they can speed up the credit recovery process.

Credit services act as middlemen between credit bureaus and lenders. You provide proof of the error to your lender, who in turn passes it to the service. The repair service will transmit the information to the credit bureaus, who check with your creditors. If the bureaus agree there is an error, they will quickly update your credit report to reflect the change.

Often, errors are not even discovered until the middle of a closing. That is why it is best to review your credit reports and make any corrections before you apply for a loan. If you are in the middle of obtaining a loan when the problem is found, your lender might be able to help you get approved through credit repair services.

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