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Do Credit Agencies Help Repair Bad Credit

Do Credit Agencies Help Repair Bad Credit?
Does your credit stink? Did your credit get in disarray? Are you looking constantly at those ads on TV that promise to help you get back your credit?

You're not alone. Every year, thousands of people get in credit trouble and are looking for answers. Many people wonder if credit agencies help repair bad credit.

Well, the answer to whether credit agencies help repair bad credit is a little tricky. Credit agencies help repair bad credit indirectly, but they do not do it directly.

Let me explain.

If you are in trouble with your credit, don't start with the credit agencies. First look to your creditor. A credit agency is only where your bad credit is reported. Only your creditor can remove negative information from your credit report.

If you are unsure about how to proceed with your credit repair, you can get some help from your local credit counseling services. They can help you to work out a plan and a budget. There are also many non-profit groups that offer help. In addition, you can check with your employer, bank, credit union, or housing authority for no-cost credit counseling programs.

The Indirect Way Credit Agencies Help Repair Bad Credit

There are many ways, however, that credit agencies help repair bad credit. And it has to do with the Far Credit Reporting Act. These rights can help you to understand how to proceed with credit repair.

First of all, you are entitled to a FREE credit report copy if you've ever been denied credit, insurance, or employment. But you MUST ask for it within 60 days of that denial. You can also get a free copy if you can prove:
  • you're unemployed and plan to look for a job in 70 days
  • you're on welfare
  • your report is inaccurate because of fraud
Obtaining a copy of your credit report is the first step in credit repair. Also, in most states, you can get one FREE credit report every year for no reason other than your own personal desire.

If you find inaccurate information on your credit report, then you can contact the credit reporting agency and get it fixed. When it is fixed, your credit will improve. So, technically, credit agencies help repair bad credit. But you are responsible for finding the incorrect information.

But the process is not short. Expect a credit agency to take at least 30 days to take the incorrect information off your credit report.