Whether you’re in need of it or not, you may find yourself asking why is there a need for credit repair services? Can’t people just do this stuff themselves? Furthermore, if your credit is broken, isn’t that something you can’t fix? All valid questions, but at the end of the day, credit restoration companies are performing a valuable service for their clients.
Without these credit repair options, countless people would be stuck with errors on their credit report that drag down their credit score and ultimately their quality of life. These errors don’t go away either, they stick around for a minimum of 7 years if no one challenges them. Join me as we look at why a service like credit repair is the greatest weapon consumers have in the battle for fair and just credit practices.
How Credit Repair Addresses The Biggest Problem
The concept of credit is one that’s hard to grasp, even on its own. It’s not exactly like a loan, but it is similar in the sense that you have a set amount given to you to work with. Other things like mortgages, personal loans, and car financing all affect this broad concept we know as credit.
Your credit is usually measured by a credit score that tells lenders how likely you are to pay everything back on time. This score, in turn, is calculated using detailed credit reports that are supposed to accurately show everything you’ve done as a credit holder.
The key word there is “accurately,” because this isn’t always the case. The reports created to generate your score are done by companies called credit bureaus. There’s only three of these in the United States: Experian, Equifax, and TransUnion. They each gather data on you through their own methods and create reports for creditors, lenders, and anyone else you borrow from.
Since there’s no set method for collecting this data, the bureaus can often make mistakes. After all, information gets lose in translation all the time. To them, it doesn’t matter if one or two things aren’t perfectly accurate, but to someone who gets denied on a loan, it matters a lot.
Low credit can severely affect your financial health and overall happiness. It stops you from getting approved or gives you horrific interest rates that cost you in the long term where someone else wouldn’t pay as much based on a score.
Some people get to this point because of poor decisions, but many people come to this place in their lives because of things they cannot possibly control. Calamity, life changes, diagnoses, there are numerous reasons that they could reach this point.
Should they be punished for the next 7-10 years as a result? Absolutely not, but to an extent that’s what happens. Even so, there are bound to be at least some issues with their credit reports, and it is here that credit repair can truly help.
Getting Back on Track With Credit Restoration
The truth, is that credit repair can be done yourself. DIY credit repair is possible because there are laws in place that allow you to dispute elements of your report that aren’t fair, substantiated, or accurate. The only problem with this is that finding these elements can be difficult if you don’t know what you’re looking for.
Furthermore, you may not know how to properly defend your case in the dispute process if you haven’t done it before. Thankfully, credit repair services are filled with people who have decades of experience in this kind of field.
While fast credit repair is indeed possible, the results and timeline will vary from person-to-person. This is a result of the complex problems that credit can cause. An incorrect late payment is easy to dispute, while a false bankruptcy can be much more difficult.
Depending on the company you choose, they will work with both credit bureaus and your creditors each month to send and file disputes for the items on your report that could potentially be removed. Through this process, they can clear out the negative elements that are dragging down your score for no good reason.
There’s no reason that you should be punished for negative items on your report that shouldn’t be there. Check out our credit repair reviews today and find out which company is right for you and your needs.
Let’s circle back around, shall we? Why is there a need for credit repair services? The answer lies in the fact that the credit system is flawed in many ways, and people need protectors to ensure they aren’t being punished for things that aren’t their fault.