There are a lot of credit repair companies out there. Each one claims it can fix your credit and win you the ability to make big purchases. But what exactly are these companies doing? What are they manipulating, who are they talking to, and how does this help you? A good credit repair company can provide you with the tools to take back your freedom. A bad one can actually hurt you. To make an informed decision, it’s important to understand what’s going on.
It all begins with FICO. FICO is the leading provider of consumer credit scores in the United States. If you’ve ever made a big purchase, you’ve probably had to get a score from FICO or a similar service. This collects information about your financial history. FICO compares your answers to the answers of the millions of consumers they’ve studied. Using a complicated algorithmic model based on the test subjects’ finances, FICO calculates your financial “risk factor.” A single bad piece of evidence can disrupt the equation so badly that it can ruin you credit for years.
So what can we do about it? There are right ways and wrong ways. One such wrong way is adding yourself as an authorized user to another account. Many credit fixers will suggest this, because it used to help you “inherit” the credit history of the new account. Rules have changed, however, and FICO now penalizes consumers for being authorized users. A reputable credit repair company is always staying up to date with changes in credit score algorithms. If you hear a company mention “authorized user,” you can be sure that it isn’t!
Today, the most helpful approach to improving credit is by challenging claims. According to the Fair Credit Reporting Act, all information in your credit file must be fully accurate and verifiable. But the truth is, most creditors keep sloppy records, and as a result up to 80% of credit reports in the United States contain inaccuracies or unverifiable details. If you challenge them on negative claims, the companies will often remove that information, and your score will rise.
Here at National Credit Fixers, we challenge your credit information in three ways. We send dispute letters to the credit bureau, such as FICO. We also send 623 letters to the original creditors. Finally, we send validation letters to the collection agency. These aren’t just form letters with your name attached; these are personalized letters suited to fit your specific needs. This makes it easy to find mistakes and remove them from your record.
So if you find yourself unable to make the kinds of purchases you’d like, check us out. We know the right way to do things, and we’re not afraid to do it.