What is Credit Restoration?

Remove Negative Items From Your Credit Reports

WHAT IT IS … Quite simply, credit restoration, also referred to as credit repair, is the process of disputing the accuracy or verifiability of account information in your credit reports. Disputing information in your credit reports with the credit reporting agencies (CRAs), creditors and collection agencies is a legal right afforded to consumers through provisions of the Fair Credit Reporting Act (FCRA) and other federal consumer protection laws.

Upon receiving a dispute, CRAs and creditors have 30 days to investigate and ascertain whether the accounts are incorrect, outdated or unverifiable. If so, any such accounts must be removed from the credit report and the results of the investigation sent to the consumer within 5 days.

WHAT IT IS NOT… Credit restoration is not simply updating information on your credit report to reflect accurate account balances or status. Nor is it credit counseling or debt settlement - like you see advertised on TV so often.

QUALITY OF SERVICE MATTERS… As credit restoration increases in public awareness, and with more companies arising in the industry to provide these services, it’s important to understand the differences and quality of service among providers. After all, when it comes to any type of service being provided, it’s the methods and quality of work performed that a consumer is really purchasing.

For example; the level of competence of a car salesman doesn’t affect the quality or performance of the car you purchase. However, the level of competence and quality of workmanship of your mechanic matters greatly. The same holds true with credit restoration. The quality of service and methods used are crucial to the outcome.

Determining the steps needed to take and executing those steps requires cooperation between the credit restoration company and the customer. In addition to the dispute services provided, consultation and education of the customer is vital to maximizing credit score improvement. Often, the customer needs to take action on things which only they have control over. This would include such areas as managing revolving debt ratios, whether to pay off collections, and how to establish needed trade lines, to name a few.

You may already know that derogatory accounts that appear on your credit report will hurt your credit score. And the more negative accounts you have, the lower your score will be.

As you may imagine, a credit worthy consumer is rewarded with the best financing rates, insurance rates, employment opportunities, renting opportunities, and peace of mind. Below is an example of how much it can cost to have bad credit.