Saturday, May 20, 2006

Can Credit Repair Services Help Raise a Credit Score?

Your credit score is important when trying to attain the best interest rates on mortgages or credit cards, or for when you need to gain new credit. If you have errors on your credit report, or past blemishes, get them fixed so that your credit score is accurate. A credit repair service won't necessarily be able to raise your credit score, however.

Credit Errors

    Your credit can be repaired if there are errors on your credit report, as credit bureaus are obliged to remove any errors, old debts and correct any mistakes, but they can't remove legitimate claims.

Misconceptions

    Most credit repair services charge a fee for checking your credit report and making recommendations on what to do to get rid of the blemishes. This is something you can often do on your own for free or for very little cost, and credit counselors can usually tell you how to do it yourself.

Benefits

    If you fix your credit report, your credit score might improve a little depending on the error or the type of information that was removed, but it doesn't build a credit history which is important to building your credit score. Therefore, the differences between your credit score before and after fixing the errors might vary depending on your situation.

Warning

    Credit repair services can only tell you what to do to remove the blemishes and errors. Avoid any credit repair service that offers a loan to improve your credit score through credit building.

Considerations

    If your credit report has blemishes that are not errors, contact those lenders, using advice from a trusted credit counselor if needed, to help rectify the dispute and get those items removed for an even better credit score.

0 comments:

Post a Comment