Credit Restoration Services
Credit is one of the most essential parts of getting by in the modern day. Unfortunately, things can happen that undermine your credit. This can result from spending mistakes in your past. It can also come from unforeseen emergencies, medical issues, or employment problems. Credit problems can even come from events that have nothing to do with you, like identity theft.
No matter how your credit score was hurt, there’s always a path forward. One of the most common solutions to credit issues is credit restoration, sometimes called credit repair.
This article explains credit restoration. It covers the basics of credit restoration and looks at some of the different methods on how to restore credit. Then it explains the benefits of credit restoration. Finally, it closes by explaining how to find the best credit restoration service for you.
What is Credit Restoration?
Credit restoration is the process of rebuilding your credit. The process can take many forms. You can use credit restoration methods yourself. You can also hire a credit restoration company. The goal of credit restoration is to increase your credit score.
It’s important to understand that attempting to restore credit is a legitimate process. There are rules and regulations in place that are designed to help consumers. Credit restoration uses those laws as they were intended.
Credit Restoration Methods
There are several different methods to restore credit. These methods are open to people who decide “I want to restore my own credit” as well as folks who use the services of a professional. Also, these techniques aren’t exclusive. You can mix and match them as is appropriate for your situation.
That’s important to keep in mind. Every person is different. That means everyone’s credit report is different as well. Therefore, every credit restoration effort is going to be unique. There’s no “one right way” to restore credit fast.
You need to look at your reports from the three major credit reporting agencies. That will help you determine what methods or combination of methods will be most effective for you.
Disputes are the most aggressive form of credit restoration method. A dispute challenges the accuracy of something on your report. Federal laws state that if something can not be 100% proven correct, then it must be removed from your report.
This method is best for people that have lots of errors and false information on their credit report. These errors can find their way on to your credit report a number of different ways.
One of the most common sources of false information is identity theft. This happens when someone steals your personal information. They use that information to open accounts in your name and spend money on your accounts.
If someone else spent that money and opened the accounts, then you aren’t at fault. Carefully review your credit report and ensure each entry is accurate. If you find one that doesn’t make sense, then you can dispute it.
If you know your identity has been stolen, then you can use any court or legal documents about the event to help your case. You should always submit these documents with your dispute if you have them.
The next option to improve your credit is verification requests. These are a bit like disputes, but with a bit of a twist. Instead of arguing that information on your report is false, you request that the credit reporting agency confirm that it’s accurate.
This method is helpful for people who may or may not remember all of their credit issues in the past. After all, credit reporting agencies have a long memory. For example, a missed payment can stay on your report for seven years. Many people can’t remember every single time they missed a payment in the past. The verification request helps to confirm or deny the accuracy of that report.
This is important because mistakes happen. Companies and the credit reporting agencies are operated by people, and people make mistakes. Sometimes information is entered on the wrong account. Verification allows you to erase that mistake and restore your credit.
The next option for credit restoration is to begin building a solid credit history again. This can take several forms. Sometimes people take out a secured credit card. That’s a credit card where you pay a security deposit on the card equal to the card’s credit limit.
These types of credit cards are easier for people to get than unsecured credit cards. That’s because the card issuer has your money in case you don’t pay your bill. Therefore, issuing you a credit card is less risky.
This helps build your credit back up when you make on-time payments on the account. This method isn’t as fast as some of the other options, but it’s guaranteed to boost your score.
Another source of credit building can be store credit cards. This can be anything from a department store card to a restoration hardware credit card. Store cards can only be used at that store. This limits the risk the store has when they issue the card. These cards build credit the same way as a secured credit card. A series of on-time payments will boost your score.
Letters of Goodwill
A letter of goodwill is the final option for credit restoration we’ll cover. This method is essentially a plea for mercy to your creditor. It points out that you’ve made a series of on-time payments since you were late. It then asks the creditor to remove the negative information from your report.
There’s no laws governing when companies have to grant this goodwill. That means you’ll need to make a persuasive case. There are plenty of letter of goodwill templates online for you to use.
Understanding Credit Restoration Benefits
Now that you understand credit restoration and the ways you can restore credit, it’s time to cover the benefits of doing so. As you’ll see, restoring credit can have a huge impact on your quality of life.
Loans and Lines of Credit
The first way that credit restoration helps you is with loans and lines of credit. Your credit score is a major factor for getting a line of credit or a loan. Also, your credit score influences what kind of interest rates and terms you’re offered when you’re approved for one of these products.
That can have a huge impact on how much money you get over your life. A difference of even 1-2% on the interest rate for something like a car or mortgage can result in thousands or even tens of thousands of dollars spent or saved.
Your credit score also influences what kinds of credit cards you can get approved for. A better credit score means that you’ll have access to cards with more perks, like points or cashback on purchases. This can help you save money in the long run as well.
Credit scores also play a huge role when it comes to job offers. Many employers look at a prospective employee’s credit before making an offer. They do this to see how well you manage money. That means a bad or poor credit score could cost you the new job you’ve always wanted.
Credit restoration fixes this issue. It improves your credit score. That means when your potential employers look into your credit, they’ll see that you’re responsible with money. As a result, you’ll have a much better chance to land a good job.
Credit scores also affect your housing options. While it’s obvious that your credit score can affect a mortgage, it’s increasingly common for landlords to do a credit check on potential renters.
Landlords do this so they can ensure that their tenants will pay their rent on time. Rental housing is increasingly competitive, especially in major metropolitan areas. That means there’s a good chance every landlord will have multiple applications for the same rental property. Improving your credit score with credit restoration increases the odds that you’ll get the apartment or home you want.
Finding the Best Credit Restoration Company for You
Some people want to do all of the credit restoration work themselves. There’s nothing wrong with restoring your credit on your own. However, other people want to hire a credit restoration service to do the work for them.
As we said before, everyone is different, and every credit restoration is different. That means there isn’t one “best” credit restoration service. Instead, you should shop around. This section will give you some tips on things to look for when you’re comparing different credit restoration service reviews and talking to different companies.
The first thing you should look for is a free consultation. After all, it’s hard to understand what a specific company can do for you if you don’t know anything about them. It’s also difficult to see how they back up their marketing claims if they don’t know anything about you.
Most of the best credit restoration services offer this kind of consultation. During the consultation they’ll review your credit report. They’ll ask you questions about the different entries on the report. They’ll also explain what they can do to improve your score.
The free consultation is an excellent time to ask about the other things on this list. Don’t let yourself feel obligated because the company did some work for you. Make sure you talk to several different companies so that you can be sure that you’re getting the best possible deal.
Track Record of Success
The next thing you want to look for is a track record of success. Specifically, you want to see what kind of results a credit repair company has achieved for people in a similar situation as your own.
Some companies specialize in different aspects of credit restoration. One company might handle late payments very well, while another is better at identity theft. Finding the right match is the best way to get the best results from credit restoration.
The best kind of proof for past success comes in the form of before and after credit reports. Several companies put these reports online. They block out a customer’s personally identifying information and show a credit report from before and after their services were used.
If a company has these available, you should look at them. See if any reports are similar to your own. If there are similar reports, then you can get a good idea of what the company can do for you and your credit score.
Next, you should look closely at the price structure. Different people benefit more from certain price structures than others. There are generally two types of price structures for credit restoration services. One uses a monthly fee, and the other charges per item deleted.
If you have a lot of items on your credit report that you think can be removed, then you’re better off with a monthly fee. Make sure there’s no limit on how many items the company will work on at a time.
However, if you only have a few items that you need removed, then you’re better off using a pay-per-deletion company. That way you only pay for results. Moreover, your bill won’t be too high because you’re only looking to get a few things removed.
Finally, you should look at the other perks the company offers. Many companies offer credit restoration software with their services. Some have online portals that allow you to track the progress of your restoration in real-time. Companies can also offer financial education and money management advice. These perks should be used when you’re trying to decide between companies that are similar in terms of their success and pricing.
As you can see, credit restoration can play an important part in your life. It’s hard to be a consumer. It’s even harder when you have bad credit. Don’t let your bad credit cost you thousands of dollars in higher interest rates and denied loans. Use credit restoration to restore your credit quickly, and enjoy all of the benefits of a solid credit rating.