Credit Repair

Credit Repair: How to Do it Right the First Time

We normally hear the word credit repair and immediately think about banks and credit card companies checking our credit when we apply for new loans or credit cards. In this sense, when we think about credit repair, we automatically relate it to credit scores. To understand what credit repair is, and how to do it properly, we should properly define and distinguish the term from others that may be related to it.

Credit repair is the process of correcting the credit history of an entity to fix, restore or increase their credit standing. A person’s credit history appears on his credit report, given by three major credit reporting agencies. You can have a free copy of each credit report every year. However, if you want another copy or an updated one, you will have to purchase it from the reporting agencies.

Each of these three agencies is handling more than 200 million active accounts. With more than 600 million accounts in total, it’s not surprising that a percentage of it has one or more incorrect entries, entries which can potentially harm that person’s credit score and chances of getting new credit. This is where credit repair comes in.

The first step to properly repair your credit is to get an updated copy of your credit report. If you haven’t had one request for the year, you are entitled to a free copy. Since repairing your credit involves correcting inaccurate entries in your history, you will have to run a fine-tooth comb through each of the three reports, sifting through every entry to spot the incorrect data. These include incorrect accounts, incorrect dates and other details on accounts, unauthorized accounts created and unauthorized hard inquiries for new credit.

Trying to get at these incorrect entries is not only to repair your credit. It is also about protecting your identity. Unauthorized hard inquiries mean there are attempts to steal your identity, while unauthorized accounts mean that the attempts have been successful. Securing your identity is one of the more important functions of credit repair and one which is quite underrated.

After spotting those incorrect data and protecting yourself from identity thieves, the next step is to file a dispute so the records could be changed. It is recommended that any corrections should be made since most of them could potentially harm your credit standing and your score. However, you should not try and take down an entry that, although negative, is accurate. First, this is illegal. Second, it does not help your credit standing at all. 

Disputes should be sent through the mail. Depending on the circumstances, results could be available within 30 days.

Credit repair could increase your credit score, although this is not a guarantee. The guarantee is that your credit history will be accurate, although an accurate credit history can be beneficial especially if there were a lot of negative items that were changed due to your dispute. This is how credit repair companies can help you. Top-ranked companies like Blue Water Credit have trained analysts with years of experience in the business that can help you repair your credit. Visit our site at (916) 315-9190 or call us at to speak to our credit experts and schedule your consultation.

Credit Repair

Red Flags to Watch Out for When Signing Up for a Credit Repair Service

You almost always need a good credit score to perform some basic life tasks, like renting an apartment, applying for a loan, getting a phone, and so on. With bad credit, life can be hell, and it is during this time that you are likely to make a bad decision out of desperation. One huge mistake you can make is working with a shady credit repair company.

What does a credit repair company do?

Credit repair companies work with the credit bureaus and your creditors in an aim to take all the negative items out of your credit reports. Your credit score will improve only when your credit reports are cleaned up. 

The process of cleaning your credit reports starts with your credit repair company contacting credit bureaus to dispute any errors in your credit reports. They may also negotiate an agreement of “pay to delete” with your creditors, which means that you will pay the balance of your debt in exchange for the removal of the account tradeline in your reports.

The sad truth is that not all credit repair companies do business lawfully. Some fail to deliver on their promises, and some would take your money and simply disappear. 

Below are some of the things you should consider signs that the credit repair agency you are dealing with is a scam:

a. They promise to remove all negative information from your reports including the accurate ones. Your right as a consumer is to dispute any inaccurate information on your credit reports. But if the information on your reports is true, like if the outstanding balance and payment status are accurate, there is no way the credit bureaus will agree to remove them from your credit reports.

b. They suggest making you a new credit identity. File segregation is a very common strategy used by fraudulent credit repair companies. What they do is apply for a new Employer Identification Number, which you can use on new credit applications. You will use this new number instead of your Social Security Number. This might work at the start, but in the long run, this could make your situation worse.

c. They do not even try to interview you. Legitimate credit repair professionals will make an effort to talk to you personally to get a good understanding of your situation. Fraudulent agencies, on the other hand, wouldn’t bother interviewing you. They will send generic letters to your creditors, which are not likely to reflect your real circumstances.

d. They ask you to pay upfront. Credit repair companies are prohibited from demanding customers to pay upfront. You are required to pay for credit repair services once you have come through on whatever services are outlined in your contract.

Before you sign any agreement with a credit repair service, make sure you look into the company’s background. Check its licenses and read a couple of customer reviews as well. Doing these things will increase your chances of finding a reputable and professional credit repair company.