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 scores and undo the damage done to their credit health because of faulty financial behavior 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 the 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 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 like CreditFit and Credit Improvement 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.
FAQS of What is credit repair
1:How do credit repair services repair your credit?
Credit repair companies fix your credit by removing negative items from your credit report. They will file disputes with credit bureaus on negative items on your behalf and get them removed.
2:How to fix your credit in 7 easy steps?
The 7 easy steps to fix your credit are, check your credit score and credit report, rectify or dispute any errors, make timely repayment of bills, keep your CUR within 30%, pay your other debts, keep old credit cards open, and don’t get credit unless required.
3:Can you ever fix bad credit?
The most important step to fix your bad credit is to pay all your bills on time. If you have accounts that have not been used for a long time, update them. Put your accounts on autopay so that you never miss any payment. Also, pay your debts on credit cards and loans. This will help you fix bad credit.
4:How do you rebuild damaged credit?
You can build credit by using your credit card and repaying on time. Pay off your balances completely every month to avoid carrying the balance to the next month. If you accumulate your balance month on month, you will be exhausting your credit limit.