“Understanding Credit Repair: Costs, Benefits, and DIY Methods”

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What Can a Credit Repair Service Do?

Credit repair services can assist in investigating and disputing inaccurate information on your credit reports that may be affecting your credit score. Examples include:

• Credit accounts you didn’t open
• Hard inquiries you didn’t initiate
• Inaccurate personal information
• On-time payments reported as late
• Outdated information that should have been removed
• Bankruptcies you didn’t file

These companies help identify questionable information and submit disputes to creditors and credit bureaus on your behalf. They can also monitor your credit reports and notify you of new negative information.

What a Credit Repair Service Can’t Do

While credit repair services can help remove certain negative items, they cannot remove legitimate and accurate information. If you missed a payment, had a debt sent to collections, or filed for bankruptcy, you’ll need to wait until these items naturally fall off your credit reports, typically between seven and ten years. Be cautious of any service that claims it can remove accurate information, as it may be a scam.

How Much Does Credit Repair Cost?

Credit repair services can be costly, with monthly fees ranging from $50 to $150. Federal law prohibits upfront fees, but some services charge a one-time setup fee up to $200. Monthly fees are typically for the previous month’s work. The process can take months or years, potentially costing hundreds or thousands of dollars, with no guaranteed results. However, you can do everything a credit repair company can do on your own for free.

How to Repair Your Credit for Free

If your credit score is suffering due to inaccurate information, follow these steps to resolve the situation without any cost:

1. Review Your Credit Reports

Get a free copy of your Experian credit report and review it for any incorrect information. You can also obtain free copies of your Equifax and TransUnion credit reports weekly through AnnualCreditReport.com.

2. File a Dispute

You can dispute inaccurate information directly with the creditor or file a dispute with the credit bureaus. Identify the erroneous items and submit a dispute online, by phone, or via mail, providing any supporting documentation.

3. Wait for the Dispute Process to Play Out

Each credit bureau has its own process for handling disputes, typically resolving them within 30 days. Depending on the investigation results, the bureau may correct, update, or remove the inaccurate information.

How to Improve Your Credit

If you have negative information that cannot be removed through disputes, you’ll need to wait until it naturally falls off your credit reports. However, you can take proactive steps to improve your credit:

• Pay your bills on time
• Reduce credit card balances
• Apply for a new account if you don’t have any
• Avoid unnecessary credit
• Get credit for nontraditional payments with Experian Boost®

How Long Does It Take to Repair Your Credit?

Disputing inaccurate information typically takes 30 days or less. However, repairing credit from major negative events like bankruptcy or foreclosure can take several years. Addressing negative information quickly can minimize damage and help rebuild your credit faster.

Address Negative Credit Information Quickly to Minimize Damage

To maintain a good credit history, monitor your credit regularly and address issues as they arise. Reporting and disputing identity theft can prevent further fraud. Catching up on missed payments or handling high credit card balances can prevent further damage to your score.

At O1ne Mortgage, we understand the importance of a good credit score. If you need assistance with your mortgage needs, call us at 213-732-3074. Our team is here to help you every step of the way.

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