If you have a bad credit score, there are credit repair companies that can help. These agencies will review your reports, dispute errors and find ways to negotiate with creditors for lower balances or payment plans. You can also try a number of different things yourself to fix your credit. The key is to take it slowly, and do your research before hiring a company or paying for services.
Most people who hire a credit repair company are seeking to raise their scores in order to qualify for mortgages, loans or other financial products in the future. However, some people may be in need of a credit repair service for reasons other than that. These can include bankruptcy, foreclosure, medical bills or other factors that are out of a person’s control.
A reputable credit repair agency will not make unrealistic promises or guarantee results. They will work to correct the information that is incorrect on a credit report and may have access to tools that a consumer might not have, such as an understanding of how the credit bureaus calculate scores and knowledge of the laws governing the use of consumer information.
Typically, a credit repair company will start by obtaining a current copy of the consumer’s report from Experian, Equifax and TransUnion. They will then look for items that are inaccurate, misleading, untimely, biased or unverifiable. These will be disputed with the credit reporting agencies and, if necessary, the original creditor. The agency might also contact the creditor to work out a settlement for amounts owed or change the status of delinquent accounts to paid, settled or disputed.
It’s important to note that a credit repair company cannot remove accurate negative information from your report or delete entries in the history section of your report that you have added yourself. If a company claims they can, it’s likely that they are violating the law.
Some companies will offer additional services, such as credit monitoring and credit score tracking, which can be useful to consumers. Some will even provide a breakdown of the specific factors that are contributing to a person’s credit score and report.
If you are interested in starting your own credit repair business, it’s a good idea to create a detailed business plan. This will help you get funding, and it will lay out your goals for the business over the next several years. The business plan should also include a marketing plan to demonstrate how you will promote your company and attract customers. Having a strong management team is also essential, as it will help you achieve your goals and grow the business. Be sure to highlight any prior experience that you and your management team have with running a credit repair company. This will give potential investors a sense of confidence that your business will succeed. A business plan is a living document that should be updated annually as your company grows. For example, you might decide to add a new service or rewrite your business plan in order to adjust for changes.