Credit Repair Solutions for an Improved Credit Score

Some of the best credit repair solutions work quickly, but it usually takes time to recover from serious transgressions. If you have failed to comply with the T&C's of one or more credit agreements, this information will be provided to all three major credit reference agencies.

The only instance where it's possible to repair bad credit fast is when incorrect data is held. In order to check whether this is the case, you need to get hold of a copy of your credit report from each of the agencies.

Rapid Credit Repair when Errors Exist

The Consumer Data Industry Association - the trade body representing credit reference agencies - believe that 2% of all reports contain erroneous information. You can either find credit repair solutions yourself or employ the services of an attorney or professional service.

The Fair Credit Reporting Act states that you need to contact the credit reference agency directly to get any erroneous data corrected. The exception to this rule is credit cards. It's important to understand that an amendment doesn't take place over night, so it's important to check your credit report many months before applying for a mortgage, personal loan or charge card. All credit repair solutions take time to work.

The process is likely to take several months, possibly longer if the correct supporting information isn't provided. Stuart K. Pratt, the president of the Consumer Data Industry Association said that: "55 to 60 percent of consumer disputes contained no supporting documentation."

If you're going to challenge the error yourself, it's imperative that the relevant information is provided. Failure to do so will slow the process down to a snails pace. If you're concerned about handling things yourself, hire an attorney to expedite the process.

Are There Fast Credit Repair Solutions?

If you have failed to maintain the repayments on all of your credit agreements, rapid credit repair isn't a possibility. Don't believe any of the scams or websites promising to provide you with a new credit report. The attainment of a new credit report under false pretences constitutes fraud.

The only way to recover from a poor credit history is by making punctual repayments now and in the future. Provided that you do this for long enough, your credit will gradually improve. This will begin within a few months.

Even after filing for bankruptcy under chapter 7, your score will start to improve. This is provided that there aren't any further breaches. However, chapter 7 will continue to show on your credit report for a minimum period of 10 years.

Even the best credit repair solutions can't magically correct a problem, but poor credit isn't a terminal condition. Request a copy of your credit report and get any errors corrected. Make repayments punctually. If you do both of these things, you may be pleasantly surprised by how quickly you can qualify for loans, credit cards and mortgages.

Sources:

Tedeschi, Bob (2009, April). "Faulting Credit Firms on Fixing Errors." The New York Times.

Disclaimer: This article in no way attempts to provide legal, financial or tax advice. One should consult a licensed attorney, tax advisor, or other qualified financial professional before proceeding.

Updated: 6 May 2011