Credit repair entails restoring the credit to a point where one can apply for loans again. Credit repair services are often required to help people enhance their credit score and repair the damage done to their credit health as a result of poor financial behavior in the past.
Credit repair software
This software allows individuals to improve their credit scores by correcting errors as well as the presence of inaccurate information in their credit reports. Several credit repair companies have launched software that gives users a view into how their activity impacts their credit score, in conformity with consumer protection rules such as the Fair Credit Reporting Act.
What does credit repair do?
Credit repair allows to dispute and subsequently correct false negative items on the credit reports that may be negatively impacting the credit scores.
- Amounts that was made on time if missed, which could happen if there is a set up repayment plan with lower payments.
- Negative accounts can only stay on the credit report for a certain amount of time, thus this information is outdated.
- Re-aging is when a debt collector or creditor modifies an account’s purge-from date, causing it to stay on the credit report longer than it should.
To summarize, credit repair companies are becoming increasingly prominent. This is down to the fact that a large number of people are having problems with their credit reports. As a result, more businesses are entering the credit repair market. Unfortunately, not all businesses provide real services.