When you discover errors on your credit report, you can file a complaint to the issuing credit agency, whether it is Experian, Equifax, or TransUnion credit agencies. These bureaus have a vibrant customer service department to deal with customer complaints.
However, some of the claims needing rectification may require investigation and other lengthy procedures before any amendment is done. This may take time, and you will be kept in the dark regarding turnaround times to get meaningful results. In the meantime, you may end up incurring either high interest rates on your current credit facilities or even fail to qualify for credit facilities that you may be otherwise qualified for.
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At this point, your second option should be to hire a good credit repair company to have the error fixed in order to restore your credit score within a specified timeframe. The professional and timely help will enable you to access cheaper credit once again or even assist you to qualify for long term credit facilities like mortgages. Most importantly, credit repair is worth the cost from the following standpoints
Timely Credit Repair Services Might Benefit You In The Short Term
Most credit repair companies charge between $60 and $200 per month, depending on the type of service being rendered. For instance, correction of identity mix-up is less costly compared to identity theft-related credit score restoration.
Nonetheless, the benefit of the timely repair of your score should put more money in your pocket. For instance, if you are in the middle of a mortgage refinancing or a car loan application process, you can't afford to wait as the uncertainty can not only impede your credit goals but also cost you more by higher rates.
When The Issue Requires Professional Intervention
Identity theft and credit card fraud are serious issues that can take law enforcement agencies years to conclude if they have any leads. On the other hand, the credit bureaus may not have in-house infrastructure and resources to cater to your needs. Therefore the cost of hiring a credit repair company would be far less than the impact of anxiety waiting for a breakthrough in the investigation and the damage done on your credit score in the meantime.
When You Dispute Information On Your Credit Report
Delinquencies, bankruptcies, or foreclosures are some of the factors that lower credit scores. You could be eligible for a federal moratorium for some of your debts, such as mortgage repayment and late payments features on your credit report. Following such a scenario, you can engage a credit repair company to represent you and argue on your behalf why the particular information should not be considered in your credit score application.
Additionally, your credit score could be in distress due to the professional negligence of your financier, who may have given you misleading advice. A credit score company can weigh your case and write a compelling argument to the credit agency in such a case. By law, the recipient agency is required to respond within 30 days.
Despite the protection of the Credit Repair Organizations Act (CROA), you should ensure that the credit repair company is reputable to deliver as per your expectation.