How to Repair Your Credit Rating Without Getting Scammed

How to Repair Your Credit Rating Without Getting Scammed

Unfortunately, credit reporting errors aren’t unusual. Almost every week, we find instances of inaccurate credit reporting. For example, it’s not unusual for a father’s credit history to get mixed up with his son’s when they share the same name. According to a recent
60 Minutes report
, not only are errors in credit reporting common, they can also be difficult to correct.

Not surprisingly then, the financial marketplace has a plethora of agencies specializing in credit repair. Some claim they can boost your credit score in a short period of time or erase your bad credit history altogether.

When you need to fix your credit history – to secure a loan, qualify for low interest rates or other reasons – it’s tempting to believe these claims. But the truth is that some credit repair agencies make false claims about what they can do. Some even run elaborate schemes to take advantage of desperate consumers.

Beware of credit repair scams

While credit reporting mistakes happen, no credit repair agency can legitimately claim to remove accurate and timely credit history from your report.

Some credit repair agencies will take your money up front and then do nothing further. Others have more sophisticated methods: the FBI recently convicted two individuals of wire fraud after selling a software program that they claimed could erase negative information from consumer credit reports.

The credit dispute process

No matter how you go about fixing your credit history – whether through a credit repair agency or by yourself – all credit reporting disputes go through the same process, and these processes are set by the three credit bureaus.

Because the process is the same for everyone, many consumers find they can manage the credit repair dispute process themselves, and in less time and at less cost, than by going through an agency.

If you choose to fix your credit history yourself, start by reviewing the dispute process for each of the credit bureaus. Each credit bureau, including Equifax, TransUnion and Experian have dispute resolution procedures on their websites.

Find a reputable agency

If you choose to have an agency the dispute process for you, it’s important to find one that’s trustworthy.

At Meridian Home Mortgage, we offer our own in-house credit repair services and make referrals to outside agencies for consumers who’d like assistance with the dispute process. For more information about our credit repair services, visit our page on restoring damaged credit. If you have questions, do contact us.

We’re here to help you!