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How a Credit Restoration Company Can Help You?

 In Credit

You may have seen credit restoration company ads and thought it is probably the magic solution to get out of the financial quicksand you found yourself in. Or you may be a little pessimistic about some of the things you have heard about credit restoration.

So, can a credit restoration company really fix your bad credit record? The answer would be yes, but with a few strings – terms and conditions. Credit restoration has its limit. The purpose of this service is to help dispute sections on your credit record that make you look bad. Let’s take a look at some of these items.

Baseless Claims

Your record may have items that cannot be substantiated. These could be debts that have no evidence that they are debts you owe to the claimant. Sometimes there are unsubstantiated claims that affect your credit score and these can be disputed and removed.

Errors

Sometimes, there may be errors that affect your credit score. They could be the simplest of errors like a typing mistake that adds an extra zero to the amount you owe your creditor or a decimal placed in the wrong place. A simple critical examination of your credit report can reveal errors and these can be corrected by the credit bureau.

Fraud

Yes, fraud can also be a cause of bad credit reports. If you are a victim of theft or fraud, some illegitimate accounts may affect your credit report. Credit restoration can involve carrying out a detailed investigation to reveal fraudulent accounts which can then be eliminated from your report. It is essential though, that if you are a victim of fraud or identity theft, you report the case as soon as possible to avoid further victimization.

Outdated Information

Certain information must be removed from your credit report after a stated period. At times, these items may erroneously remain on the report and you would have to dispute them so that they can be removed. If for example, you were the subject of a hard credit inquiry, this must be removed automatically after 2 years, if this is not removed after that period, you are justified in disputing it and the credit bureau must have it removed from the report.

What Credit Restoration Can’t Do

If you are hoping to get out of a legitimate debt, the bad news is that credit restoration will not help you with that. Any negative credit report that is a reflection of your true credit cannot be disputed successfully. Also, any debt you owe and are supposed to pay cannot be removed just because you disputed it.

Many people have unrealistic expectations when they try out credit restoration and that is a recipe for disappointment. Knowing what to expect and keeping your expectations down to earth begins with knowing exactly what you will be able to achieve. If you have been avoiding paying debt and expect the restoration company to help you do that even more, you will be disappointed.

If you have things to dispute like an error in the spelling of your name, that is probably something you could do on your own. However, for a complete check of all your credit reports, it is wise to have a restoration company look through and help you dispute them.

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