A poor credit score can be caused by either bad credit or inaccurate data. In an article "About the credit report dispute process", Experian stated: "Mistakes on your credit report -- whether they are tiny errors or major mistakes -- can damage your credit rating, and that can have far-reaching implications."
There are several ways you can go about fixing credit problems. Some people prefer to perform free do-it-yourself credit repair by following the advice of credit reference agencies; others turn to a credit attorney. The choice will ultimately depend upon your time and money.
How Do I Repair My Credit Score?
Order a free copy of your report for Experian, Equifax and TransUnion from annualcreditreport.com and check for the most common errors. These may have occurred because there's been an administrative error, or accounts from a former partner are still linked to yours.
You're looking for negative items that should have dropped off your report, incorrect social security numbers, addresses that you've never lived at, credit applications that you've never made and debts that show as active even though you've already cleared them.
Under the Fair Credit Reporting Act, credit reference agencies are legally obligated to take corrective steps to remove errors within 30 days. However, it's your duty to provide a copy of the supporting documentation. Never post the original, even by registered post, in case it gets lost in transit.
Free Do-it-Yourself Credit Repair vs Credit Attorney
Professional credit repair by a lawyer is more thorough because he'll check for every factor that has the potential to damage your credit. There isn't much that he hasn't encountered or doesn't know how to resolve. When you know precisely what you're looking for, fixing credit problems is a lot easier.
If you don't have the time to monitor your report due to family or work commitments, an attorney will take care of everything for you. If you're already paying to monitor credit activity online, you can normally find a basic service that will do that and more for a slightly higher payment.
Pay close attention to the way a service is advertised. Unless your problem is due entirely to erroneous data, rapid repair is a myth. It's normally advisable to do business with tried-and-trusted companies that are explicit about what they can do to give your score a welcome boost.
How Much Will Professional Credit Repair Cost Me?
Professionally removing bad credit from your credit report involves the payment of a set-up charge and a monthly subscription fee. Packages or price plans are tiered, but you should expect to pay at least $29.99 per month. The more you pay for your subscription, the better the support.
In theory, there's nothing that a credit attorney can do that you can't do yourself. However, you may not have sufficient free time to regularly monitor your credit activity or correct any issues. It all comes down to whether time or money is most important to you.
Sources
- "About the credit report dispute process." Experian
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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