Credit correction can be a key process in your financial success. Ensuring your credit report is error free helps present you in the best possible light to creditors, lenders, and everyone else that uses your credit report to assess your financial life. And that’s exactly what the process called “credit correction,” or “credit repair” can do for you. (And yes, those two terms all refer to the same thing!)
Credit repair helps you treat your credit effectively. We start with a simple definition so you can understand what credit correction (also called “credit repair”) is and how it helps you achieve a better financial outlook. Build your knowledge so you can decide if, when, and how you can use restoration to build a better credit score.
If you correct mistakes that often appear on your credit report, you can actually improve your credit score.
That’s what credit repair services (or similar services by different names) do. They review your credit reports, identify errors and then do the legwork to dispute those errors with the credit bureaus. And this is a legitimate (and often extremely useful) service, so not all credit repair companies are scammers. You just have to be able to tell what’s real from fraud.
So really, what is a credit repair service and what do they do?
A credit report is a living history of your credit usage. Each credit bureau (Experian, Equifax, TransUnion) maintains its own version of your credit file. You’d expect or at least hope that the credit bureaus could maintain accurate records – and you’d be wrong. According to study from Experian…
1 in 4 contain an error that would negatively impact a consumer’s credit score
1 in 20 contain an error that’s bad enough to decrease a consumer’s credit score by 25 points or more