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How Does Credit Repair Work?

Credit repair is a method of credit rebuilding for people with a low credit score or past credit issues. Past delinquencies, missed payments, charge-offs, bankruptcies, foreclosures, and even an error on your credit report can affect your creditworthiness. Good credit can be helpful in getting loans, a job, or an apartment and can affect an interest rate or insurance premium. Credit repair is just one method of improving your credit, but here’s a look at what it is, how it can help, and what a credit repair company can and can’t do to help improve your standing with the credit bureaus.

What Does Credit Repair Mean?

A paid service provided by a credit services organization, credit repair is a process in which the service provider tries to eliminate negative information from your credit report. Credit repair is legal per federal law and is considered a crime only in Georgia, where it is a misdemeanor. The information companies promise to remove is most often accurate.

While some companies claim to remove inaccurate information, their main objective is to remove negative details sooner than they normally would. They can also work to modify information so it looks more favorable. Consumers have multiple options when it comes to communicating with a credit repair company; most firms will work via phone, mail, or the internet.

What Do Credit Repair Companies Do?

Credit repair companies can work with you on several different levels. They can:

  • Manage Disputes: Familiar with the dispute processes of creditors and credit bureaus, the firm can manage the process and target affected accounts.
  • Identify Errors: Credit reports usually have accurate information, but errors do occur. If suspicious activity is found, the repair company can help overcome problems such as identity theft.
  • Find Opportunities: The process should involve a close examination of your credit report, which can help look for ways to improve your credit score.
  • Research Statutes of Limitations: Lenders and creditors may be limited in the time they have to collect debts, which restrict their ability to legally impose collections activities on you.
  • Develop a Credit Management Plan: Suggestions based on experience and your personal credit situation can help take steps to improve your scores over time.

A process known as jamming may also be used. The company will repeatedly send letters that dispute negative information on your report to credit bureaus and other entities. In doing so, the idea is to make it seem the lender, bureau, or debt collector has failed to process the dispute within the required amount of time. The Fair Credit Reporting Act (FCRA) requires disputes to be processed within 30 days and for accounts to be deleted if an organization fails to do so.

What Are Credit Repair Companies Not Allowed to Do?

Certain practices are prohibited by the Credit Repair Organizations Act (CROA). It forbids companies in the credit repair industry from accepting pre-payment, such as a lump-sum payment for a subscription, or charge for services not fully rendered. Companies also cannot make promises that guarantee removal of any type of information. Deceptive representations, such as money back guarantees without a list of conditions, are prohibited too.

In addition, credit repair companies cannot encourage customers to report false information or change their personal details to deceive credit bureaus. Companies must inform customers they can dispute their own credit information for free. The CROA also requires consumers to be informed of their right to sue a credit repair company if they violate the law, and that credit bureaus, while responsible for maintaining accurate information, can make mistakes.

Does Credit Repair Work?

Despite some claims, there are no statistics that prove how effective credit repair services are, or that reveal an average impact on credit scores. There is no average pricing information either. If there is valid negative information on your credit report, it will be removed in seven to 10 years, and you can easily dispute details with lenders, creditors, and credit bureaus. You can check your own credit reports for accuracy at no cost, but a reputable credit repair company can offer a range of benefits.

American Credit: Effective Credit Repair

Not all disputes go smoothly. American Credit specializes in the dispute letter process and a pre-litigation process without the fees charged by a consumer credit law attorney. We have helped thousands of clients improve their credit and can make credit repair work for you. For a free credit repair consultation, call 855-274-1732 or reach out to us online.

Why you
should call us
right now?

  • Get an accurate analysis to your situation.
  • See results in as little as 60 days.
  • Have us create a road map strategy.
  • Free comprehensive analysis.

Call now! (877) 856 4999 Contact Us

See what our customers say!

A Word From Clients With Improved Credit

To whom it may concern, If you are on the fence regarding credit repair, I can assure you that American Credit Repair is the way to go. My wife and I recently purchased our home and without the team at American Credit Repair it would not have happened. They worked hard, kept us up to date on everything they did and our closing escrow is proof that they did their job. Before using Steve and his team we spent a year trying fix my credit our selves, with little to no results. They know how to get positive results and we have our new home to prove it! Thanks to every one at American Credit Repair!!!!

M.J. Griffin

A friend of mine referred me to American Credit promising me they could do big things with my credit. And big things they delivered! They were able to remove ALL (yes ALL) derogatory items from all three bureaus. My credit score jumped up 81 points to 754. Miraculous! And, they are just about the best people to work with ever. They explained everything clearly and were endlessly helpful. They’re my knights in shining armor. I’m refinancing my house and saving hundreds of dollars every month. I’ve already recommended them to friends and will continue to for a long time to come.

Y.G. – Santa Monica, CA

Why you should call us right now?

  • Get an accurate analysis to your situation.
  • See results in as little as 60 days.
  • Have us create a road map strategy.
  • Free comprehensive analysis.

Call now! (877) 856 4999 Contact Us

See what our customers say!

A Word From Clients With Improved Credit

To whom it may concern, If you are on the fence regarding credit repair, I can assure you that American Credit Repair is the way to go. My wife and I recently purchased our home and without the team at American Credit Repair it would not have happened. They worked hard, kept us up to date on everything they did and our closing escrow is proof that they did their job. Before using Steve and his team we spent a year trying fix my credit our selves, with little to no results. They know how to get positive results and we have our new home to prove it! Thanks to every one at American Credit Repair!!!!

M.J. Griffin

A friend of mine referred me to American Credit promising me they could do big things with my credit. And big things they delivered! They were able to remove ALL (yes ALL) derogatory items from all three bureaus. My credit score jumped up 81 points to 754. Miraculous! And, they are just about the best people to work with ever. They explained everything clearly and were endlessly helpful. They’re my knights in shining armor. I’m refinancing my house and saving hundreds of dollars every month. I’ve already recommended them to friends and will continue to for a long time to come.

Y.G. – Santa Monica, CA

We can help you today!

What situation are you currently in?

  • I’m trying to qualify for a home loan
  • I’m trying to rent a home and cannot qualify for my lease
  • My interest rate on my loan is high, and my credit score is poor
  • My future or employer requires a clean credit report
  • I need a business line of credit or loan, and I’m having a hard time qualifying

Contact us and get a FREE Credit Repair Consultation.

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