Online Credit Repair Basics

Online companies offering credit repair services are becoming increasingly popular. These online companies assist people in repairing their credit so they become eligible for better credit products, such as credit cards and home loans.

By rebuilding your credit and improving your credit score, credit lenders will view you as less of a financial risk and will be more willing to offer financial products with better annual percentage rates (APRs) and less fees and charges. It is for this reason that people seek the help of companies that offer credit repair services.

The first thing you will need to do is complete an online application. This application will request personal and financial information from you, such as your history of late payments, court judgments, bankruptcies, etc.

After completing the application, you will normally receive a response in two to three days. The company will report back to you what it perceives to be the problematic areas of your credit history, what it feels it can to do help, and the cost to complete these steps to improve your credit score.

It is important to know that any entries on your credit report which are accurately reported will remain on your credit report for up to seven years. There is no legal way to remove accurate information from your credit report. Also, be aware that it is illegal in the United States for a credit repair service to request payment for services which not yet been rendered.

Be aware also that any course of action a credit repair service might take can also be accomplished by you. There is nothing one of these companies do that you cannot do yourself. The process entails writing a dispute letter to the credit reporting agency requesting that the information be revised or removed. You will need to provide documentation to substantiate your claim. Also, be sure to retain copies of any and all correspondence to and from the credit reporting bureau.

The main advantages to using an online credit repair service are that it will save you time and stress when dealing with this process. If these are good reasons for you to employ an online credit repair service, then the fees you will pay may be justified. If you would prefer not to pay the fees, then you might try do-it-yourself credit repair.