How Does Credit Repair Work?September 21, 2022
What Does a Credit Repair Specialist Do?
When you have less-than-perfect credit, it can be difficult to get approved for a loan or even a credit card. This is where a credit repair specialist comes in. A credit repair specialist can help remove negative items from your credit report, increase your score and help you get approved for the products and services you need.
They do this by analyzing your credit report and working with the three major credit bureaus to dispute any inaccurate or unfair items on your report. They can also help you create a plan to improve your overall credit health. So, if you’re looking to build or rebuild your credit, a credit repair specialist is a great option to consider.
What Certifications Should a Credit Repair Specialist Have?
When looking for a credit repair specialist, it’s important to make sure that they have the right certifications. The most important certification to look for is the Certified Credit Analyst (CCA) certification from the National Association of Credit Management (NACM).
This certification indicates that the specialist has a deep understanding of credit and credit reporting. They must also keep up with changes in the credit industry in order to provide you with the best possible service. In addition, a credit repair specialist should be licensed and insured. This protects you in case something goes wrong during the repair process.
What Laws Should a Credit Repair Specialist Know About?
Credit Repair Specialist need to be familiar with many laws and organizations. Understanding how the Federal Trade Commission and the Consumer Financial Protection Bureau can impact their clients as they try to help improve their credit is very important.
The specialist must also be familiar with The Fair Credit Reporting Act, the Credit Repair Organizations Act, the Fair and Accurate Credit Transactions Act, and the Fair Debt Collection Practices Act. The specialist must also be educated in their state’s credit repair laws.
What Will a Credit Repair Specialist Do?
The first step to hiring a credit repair specialist is to contact them. They will gather some information about you and your situation, which will help them determine if they are able to help you or not. If they are able to take on your case, the next step is for them to pull your credit report and credit score.
Once they have this information, they will review the report and determine the best course of action to take in order to improve your score. They will then create a plan that outlines every step of the process. This way you understand exactly what is always going on.
The Repair Process and How It Works
Once your specialist has created their plan, it’s time to start working on repairing your credit. The first step is disputing any negative items with the individual credit bureaus and verifying the accuracy of all your current information.
Next, they’ll work on removing any negative items from your report. They will also help you establish a good credit history by adding positive items to your report. They’ll do this by paying off any delinquent accounts, which will show creditors that you are able to responsibly pay your bills on time.
Once all these steps have been taken, they can work on increasing your score even further with different strategies.
Does Working with a Credit Repair Specialist Help Your Credit Score?
A credit repair specialist can do a lot for your score, but they cannot raise it without some sort of effort on your end. This is because they are only able to remove negative items from your report and help you improve your history with the different bureaus.
So, while their work will definitely have an impact on your score, you will also have to work on improving it yourself. You can do this by paying your bills on time and in full each month, only applying for credit when you need it and keeping your balances low.
What Can I Expect After Hiring a Credit Repair Specialist?
After hiring a credit repair specialist, things should start looking up for your credit within a few months. However, it can take up to six months for your score to increase significantly. During this time, the specialist will continue working on your report to help you continue to improve your score.
Once everything is done and all negative items have been removed from your report, it’s time to work on increasing your score even further. The best way to do this is by paying your bills on time and keeping your credit utilization low. This means never carrying a balance of more than 30% of your available credit.
In addition, it’s a good idea to add some positive items to your reports such as installment loans, mortgages, and other types of accounts with solid repayment histories.
Questions You May Want to Ask a Potential Credit Repair Specialist
What Are Your Fees?
Will My Credit Report Be Pulled?
Can I Do This on My Own?
What Type of Services Do You Offer?
When Should I Expect Results?
How Long Have You Been in Business?
The Bottom Line
While a credit repair specialist can be very beneficial when working to repair your credit, it’s important that you understand what they can and cannot do. While their services are essential in repairing your credit, you will still have to put forth the effort yourself if you want to see lasting results.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.