The average credit score in the United States is 687. A good credit score is anything above 700. That means most Americans don’t have good credit.
Did you know that there are ways you can repair bad credit? Read on for 5 ways credit repair services can make corrections on your credit file so you can see your credit score start to climb.
1. Update Mortgage Information
One of the most important things a credit repair company does for you is to fix inaccurate information on your credit bureau file.
Usually, in foreclosures and short sales, the reporting is incorrect. For example, short sales might be reported as charge-offs. Or there may have been a tiny error, like a typo, that is impacting your credit score.
A credit restoration company will go through your credit bureau reports and fix any inaccurate information.
2. Fixes Outdated or Expired Information
Another thing that a credit restoration service can help with is clearing old information from your credit report.
Old debt should fall off your record after 7 years. But it doesn’t always. Credit bureaus don’t always update the millions of credit reports when accounts are closed, or when old debts expire.
By removing old information from your file, your credit score can take a big turn upwards. A credit repair company will contact your lenders and the credit bureaus to get old info off your account. Your credit score will thank you!
3. Remove Late Payments
It’s difficult to do, but the best credit restoration companies are able to remove late payments from your credit report.
They might be able to convince a lender to remove a late payment by showing your recent, excellent payment history. Or they may be able to prove that those payments weren’t actually late.
From now on, get into the habit of always paying your bills on time. That is one of 5 things you can do to repair your credit.
4. Tax Liens
Tax liens are special types of claims that may stay on your credit report for 10 years after payment! Worse, unpaid tax liens can stay on your report forever.
Working with tax liens requires expert handling. Credit restoration companies can help you get tax liens removed from your credit report.
5. Identity Theft
60 million Americans have been affected by identity theft. And that number climbs each year.
With just a small amount of information, fraudsters can take out large loans and buy expensive things on a credit card in your name.
And then, you are stuck with the repercussions. You might not even know that you’ve been the victim of identity theft!
A credit repair company will dispute fraudulent accounts. This is an important step in repairing your credit rating.
Bottom Line on Credit Repair Services
We hope these 5 ways that credit repair services can help you improve your credit has been educational for you.
If you have any questions or would like more information about how our credit repair services can help you, contact us today.