What is credit repair?
Credit repair involves rebuilding your credit health to a level where you become eligible for loans. People typically need credit repair services to help them improve their credit score and undo the damage done to their credit health because of faulty financial behaviour in the past.
How do I know if I need credit repair?
In general, if you have a credit score of less than 750, it is advisable to seek professional help to improve your score and prevent rejection of your loan applications in the future. Any rejection further decreases your score as it implies that lenders have turned you down because of your poor credit history.
What are the kinds of credit repair services available?
There are several ways of resolving credit problems, depending on each individual’s situation. CreditMantri, for instance, offers a free credit report and credit health check that identifies the customer’s problem areas and makes recommendations for improving the credit score. If you do not have the time to follow up on the recommendations yourself, you can opt to have help in executing them. For example, if there are errors in your report, CreditMantri will file a dispute with the credit rating agency on your behalf, and follow it up until it is resolved.
Similarly, you could increase your credit score by availing of a secured credit card against a fixed deposit to ensure that you do not miss any payments on your credit card account. This is one way to ensure that your score does not drop due to delayed or missed payments.
How long will it take for my score to improve?
Depending on the extent of your credit issues, it can take up to 6-8 months to reach a stage where you are loan-eligible. Those with relatively minor issues can rebuild their credit in a much shorter time frame. A score in the 600 range will naturally take less time to improve than one in the 500 range.
Rebuilding your credit is not an impossible task. Though there is no magic wand that will instantly fix all your credit issues, all it needs is a certain amount of commitment and perseverance to achieve your credit goal.
CreditMantri offers a range of tailored services that will help you improve your credit score and general credit health. The experienced team can identify your credit issues and help you turn around your credit profile in the most efficient and effective way possible.