What is Credit Repair and How Does it Work?

Your credit score is calculated from the information contained on your credit report. Negative information on your report can result in a lower score, meaning higher interest rates on credit cards and loans that could cost you a lot of money in the long run. Most factors on your report can stick around for 7-10 years. However, this doesn’t necessarily mean that you can’t fix your credit score before then. Many individuals with lower scores work hard to repair their credit.

 

What is Credit Repair?

Credit repair refers to the act of fixing a bad credit report. This can be as simple as identifying and removing any inaccuracies and mistakes from your report that you do not recognize or as complex as recovering from identity theft. It can also include the need to establish healthier financial habits like budgeting, efficient debt repayment, and more. Those working to repair credit typically can do so on their own. However, the option to seek help from a credit repair service does exist for a price. Just be mindful of overpricing and scams when choosing a service to assist you.

 

How Does Credit Repair Work?

 

When it comes to repairing your credit, it’s important to remember that it’s possible for you to do the same things as any credit repair service that you may decide to hire. If you’ve discovered a mistake on your credit report that is affecting your score, you have the right to contact each of the credit reporting bureaus to dispute and remove the incorrect information for free. It’s when these issues get more complex or stressful that you may want to consider professional help from a service to step in and handle credit repair on your behalf. Additionally, establishing better financial habits to help with debt repayments can be accomplished on your own with some work. However, coaches and debt repayment plans offered by some credit repair services may help you with this process as well.


How Do I Repair My Credit?

 

The first step in repairing your credit is identifying that there is a problem you want to fix. This is most easily done by reviewing your credit report. You may request one free credit report a year from each of the three major credit bureaus. From there you can decide whether you want to repair your credit on your own or seek help from a credit repair service. Remember, you can do anything a service can do. If you choose to do it alone, start by paying your bills and lowering your debt. This has the potential to make a big impact on repairing your score and will establish healthier future habits in debt repayment. 

There are many things you can do to fix a bad credit score. However, it takes patience and persistence. Learn more ways to help build and repair your credit.

 

Disclaimer: The information posted to this site was accurate at the time it was initially published. We do not guarantee the accuracy or completeness of the information provided. The information contained in is provided for educational purposes only and does not constitute legal or financial advice. You should consult your own attorney or financial adviser regarding your particular situation.

Advertiser Disclosure: TransUnion Interactive may have a financial relationship with one or more of the institutions whose advertisements are being displayed on this site. In the event you enter into a product or service relationship with any such institution through the links provided on the site, TransUnion Interactive may be compensated by such institution. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TransUnion Interactive does not include all credit card companies or all available credit card offers.