What Should You Know About Credit Repair?
There are many layers to credit repair, and the more you peel away and deeper you dig often leads you to new layers and yet more questions.But fear not. We have gathered here a collection of some of the most frequently asked questions, along with some you may not have thought of.
If you have a burning question about credit repair and don't see your question below, click here to send a message to our team.
Frequently Asked Questions
1What is a Credit Score?
A credit score is a three-digit number, between 300 and 850, that represents your credit risk to lenders. They are calculated using information in your credit reports, including your payment history, the amount of debt you have, and the length of your credit history. The higher the score the better. Higher scores show lenders you practice responsible credit behavior.
2What Affects Your Credit Score?
The biggest factor influencing your credit score is your payment history. While a single late payment won't likely hurt your score, multiple late payments do affect it. Creditors report your payment activity to the major credit bureaus every 30 days.
3What is Credit Repair?
Credit repair focuses on correcting inaccuracies on your credit report. Credit repair helps to raise your credit score so you can earn a better interest rate on loans and save money. Lower credit scores can limit your ability to obtain a loan or cause lenders to charge high interest rates or affix undesirable repayment plans.
4How Do I Obtain My Credit Report?
Contact any of the following bureaus to request your credit report.
The three major bureaus:
www.experian.com
www.equifax.com
www.transunion.com
The three major bureaus:
www.experian.com
www.equifax.com
www.transunion.com
5How Often Should I Check My Credit Report?
A big part of protecting your good credit is checking your credit reports often. Check them once per year, and more in certain situations. Each major credit reporting agency ofers you a free copy of your credit report annually. Spread out your requests during the year (like every four months) so you can check your report three times a year, for free.
6Is Credt Repair Worth My Time?
The short answer is yes. Definitely yes. Credit affects more than you realize. Not having good credit can cost you thousands of dollars a year and make it difficult for you to obtain loans and insurance. Credit repair steps can improve your score in ways you may not see, but that professionals can see.
7How Long Does It Take to Repair Credit?
The length of time to repair credit varies. Each situation is different depending on your credit profile. On average, credit repair takes about three to six months to resolve disputes that you need to make. The fewer mistakes to dispute, the less time it will take.
8Will Checking My Credit Hurt My Credit Score?
No. Checking your own credit report through a major credit reporting agency creates a “soft inquiry.” These inquiries are listed after viewing your own credit report, but they are not shown to creditors and do not affect your score. You can pull a free copy of your credit report annually from each of the three credit reporting agencies--and should.
9How Long Does Negative Information Stay on Your Credit Report?
While most negative information stays on your credit report for 7 years; a few items remain for 10 years. With credit repair efforts, you can decrease that time by identifying negative areas of your credit you need to improve and challenging inaccuracies.
10What Are Steps I Can Take to Improve My Credit Score?
Proactive ways to improve your credit score include: making payments on time, pay off debt, keep balances low, apply for and open new credit accounts only when needed, don't close unused credit cards, avoid applying for too much new credit and creating multiple inquiries, and review your credit report regulary and dispute inaccuracies.
11What are the names of the three credit bureaus?
Experian, Equifax, and Transunion.
12What’s the difference between the three bureaus?
Each credit bureau uses a different formula to figure your credit score, and they don’t always use the same consumer information.
13Can I dispute items on my credit report directly to the credit bureaus online?
14Can I dispute items on my credit report directly to the credit bureaus via mail?
Yes, in fact, here are the addresses. Go get ‘em.
Equifax Credit Information Services, LLC
P.O. Box 740241, Atlanta, GA 30374
TransUnion Consumer Relations
P.O. Box 2000, Chester, PA 19016-2000
Experian National Consumer Assistance Center
P.O. Box 4500, Allen, TX 75013
Equifax Credit Information Services, LLC
P.O. Box 740241, Atlanta, GA 30374
TransUnion Consumer Relations
P.O. Box 2000, Chester, PA 19016-2000
Experian National Consumer Assistance Center
P.O. Box 4500, Allen, TX 75013
15What can be removed from your credit score?
Medical Bills, Identity Fraud, Foreclosures, Repossessions, Late Payments, Inquiries, Collections.
16What is the Fair Credit Reporting Act?
It is a US Federal regulation which stipulates that if there is any faulty, questionable, missing, or incomplete information on your credit report, the credit bureaus have to remove it.
17How is your credit score figured?
The bureaus place different importance to different information on your credit report. Here is a basic breakdown which explains what percentage of your score each element represents.
35% Payment History, 30% Amounts Owed, 15% Length of History, 10% Types of Credit, 10% New Credit.
18If I write a dispute letter, how long do the bureaus have to get back to me?
Once a bureau receives your letter, they have 30 days to remove the item or find documentation explaining why they will not remove it.
19Can I call the credit bureaus to make a dispute?
Yes, but most consumers want to have a written record of all correspondence with the bureaus. So most use on online portal leading to emails or a written letter. Here are the phone numbers:
- Equifax: 866.349.5186
- Transunion: 800.916.8800
- Experian: 800.493.1058
- Equifax: 866.349.5186
- Transunion: 800.916.8800
- Experian: 800.493.1058
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