Many companies claim they can “repair” or “fix” your credit. And yes, some of these types of services are scams. Moreover, you can do it yourself for free if you’re willing to put in the time and effort.
However, there are a few reputable options for having someone else do so too, if you’re wondering can you pay to have your credit fixed.
What Is Credit Repair?
Credit repair is the process of working with creditors and collection agencies to get inaccurate information removed from one’s financial reports. This type of activity often involves filing disputes with bureaus listing incorrect debts or items on an individual’s report that were not theirs, to begin with. Additionally, it also involves requesting validation of debt notices on accounts where you owe money to a creditor.
What Can You Do to Fix Your Own Credit?
Most people can fix their own credit without help from a third party. The three major credit bureaus – Experian, TransUnion, and Equifax – all offer online dispute forms where consumers can fill out pre-formatted complaints about items on their reports that they believe are incorrect. For example, if you have been paying off debt, but it still shows up as delinquent on your report, there is something wrong with the data reporting that needs to be corrected. In cases like this one, would file a dispute directly with the credit bureau, listing each item in question and providing copies of any supporting documents along with the complaint. This type of activity is generally sufficient to get a lender to update their records.
What About Errors on My Reports?
The breakdown in the credit reporting system is one of the reasons that many people choose to pay for help with their credit reports because there are so many errors present. The time you spend disputing incorrect items on your own can be significant, and it may not always result in getting an item removed from your report even if it is proven wrong. In cases where there is no response from a creditor or collection agency after filing a dispute, you have the option of contacting them directly to ask for help correcting information on your credit report or filing a complaint with the Consumer Financial Protection Bureau (CFPB).
How Can Someone Help Fix My Credit?
Some companies offer the service of updating the information on your credit report for you. You can pay them to do that or hire an attorney and file a lawsuit against the creditors and collection agencies that are reporting incorrect information about you.
Credit repair is the process of working with creditors and collection agencies to get inaccurate information removed from one’s financial reports. This type of activity often involves filing disputes with high bureaus listing incorrect debts or items on an individual’s report that were not theirs, to begin with.
Additionally, it involves requesting validation of debt notices on accounts where you owe money to a creditor. Most people can fix their own credit without help from a third party; however, there are companies that offer services that will update your financial records at no cost to you.
When you pay for help with your credit report, it can cost anywhere from $50-$1,000+ per item on your reports, and the average person will spend about $100-$500 per year on these services if they choose to use them.
One company known for operating in this area is Lexington Law and yes, Lexington Law is legit.
What Can You Do To Fix Your Own Credit?
The three major credit bureaus – Experian, TransUnion, and Equifax – all offer online dispute forms where consumers can fill out pre-formatted complaints about items on their reports that they believe are incorrect.
This can be instances such as you have been paying off debt, but it still shows up as delinquent on your report, or there is something wrong with the data reporting that needs to be corrected. People make mistakes all the time, so it’s important to review your credit reports on at least an annual basis to make sure the data they contain is accurate.
In cases like this, one would file a dispute directly with the credit bureau, listing each item in question and providing copies of any supporting documents along with the complaint. This type of activity is generally sufficient to get a lender to update its records.