Do You Need a Credit Repair Company to Fix Your Credit Score?

By
Real Estate Agent with Keller Williams Capital Properties DC AB15253

Even before you start to look for your dream home, you are going to choose a lender and start the process of applying for a mortgage. There are several reasons that this should be your first step.  Finding out what your lender will qualify you for - and comparing that with your comfort zone of mortgage payments - is always a good reality check.  You probably aren't exactly sure what price range you should be targetting for your dream home so this will help you simplify your home search.  The second reason is equally important.  If your lender pulls your credit early in the process, it gives you time to improve your score in a purposeful system. 

Once you know your credit score, your lender may have some suggestions such as paying off a particular card.   Furthermore, if your credit score is low, it could be due to errors on your report. This is very common, and it can significantly lower your score and make it difficult or impossible to be approved for a credit card, car loan or mortgage.  With sufficient lead time, you can dispute those errors and get your score up into a range sufficient to qualify for that dream home. 

If your credit report contains inaccurate information, take the necessary steps to dispute it and have the mistakes corrected. A credit repair company may be helpful in some cases - if you pick a reputable one, but it might not be necessary.  You may be able to do this on your own.

What a Credit Repair Company Can and Can’t Do

A credit repair company can help you dispute inaccurate information. You can do that on your own as well, but if your report contains multiple errors, or if you have been a victim of identity theft and criminals have opened several fraudulent accounts in your name, it might be too complicated and time-consuming to dispute all of the errors yourself. A credit repair company can write to the credit bureaus on your behalf to dispute the errors and provide the documentation that is needed to correct them.

In most cases, a credit bureau is required to investigate a dispute within 30 days of receiving the information. That can help you correct mistakes and repair your credit score quickly so you don’t have to put your financial goals on hold.

A credit repair company cannot remove negative information from your credit report if the information is accurate. Bankruptcies, liens and accounts in collection will stay on your credit report for several years, and there is nothing you or a credit repair company can do about it.

How to Find a Reputable Company

There are many legitimate credit repair companies that follow the law and respect consumers’ rights, but there are also a good number of scams. If a company promises to raise your credit score by a specific number of points, don’t believe it. If a company tells you to dispute correct information, don’t do it. It’s also illegal for a credit repair company to charge you before they complete any work on your behalf.

A reputable company should explain your rights and be clear about what they can and can’t do to help you. They should listen to why you want to dispute information and request documentation to support your position. They should not promise you instant results.

 

Your Lender Can Help You Clear Up Inaccuracies on Your Credit Score

 

If you are applying for a mortgage, your lender will pull your credit report and can review that with you.  A helpful lender will give you suggestions about the steps you should take to dispute inaccuracies on your credit report.  A good lender will be a great asset in your home buying process.  Since it can take some time to clear up inaccuracies on your report, it is a good idea to start working with a lender well ahead of actually making an offer on your dream home.  Most lenders can do everything that a credit repair company can do for you and it will not cost you anything, plus they should be reliable and reputable. 

If your lender will not or cannot help you clear up inaccuracies on your credit report and give you advice on how to improve your score by taking other steps, then you probably are working with the wrong lender.  

If you are thinking of buying a home in the DC metro or a home in Bethesda MD, feel free to give the Lise Howe Group a call at 240-401-5577 for some suggestions of great - and helpful - lenders who can guide you through the home buying process. 

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Brian England 11/19/2018 01:55 PM
  2. Debbie Reynolds 11/21/2018 05:00 AM
  3. Gita Bantwal 11/23/2018 04:00 AM
  4. Will Hamm 04/10/2019 04:36 PM
Topic:
Home Buying
Tags:
fix credit report
credit repair company
homes for sale in washington dc
homes for sale in bethesda md
lise howe group

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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Great insight, Lise - this is an area so many people are confused about and need good info.  A great credit repair company is a tremendous resource, but for a lot of basic tips and tricks, a good lender can be just as helpful!

Nov 26, 2018 07:46 PM #16
Rainmaker
381,863
Matthew Klinowski, PA
Downing-Frye - Naples, FL
Golf Community Real Estate Specialist

Lisa, thanks for sharing your thoughts on this topic. There is a lot of confusion among buyers about credit and it's impact on their ability to buy a home. Some feel if they don't have good credit there's nothing they can do about it which just isn't true. First time home buyers should find this information very useful

Nov 27, 2018 03:42 AM #17
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Matthew Klinowski, PA -thanks for stopping by - I always appreciate your comments. 

Nov 27, 2018 04:54 AM #18
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Cynthia "Cyndi" Cook -thanks so much for your kind words - I am glad you have joined us in the rain! 

Nov 27, 2018 04:55 AM #19
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Dorie Dillard CRS GRI ABR - thanks so much for your comments - I just opened AR this morning and was surprised! 

Nov 27, 2018 04:56 AM #20
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Debe Maxwell, CRS - it makes me sad to think of how many disreputable people there are out there waiting to take advantage of uninformed buyers

Nov 27, 2018 04:57 AM #21
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Tammy Lankford, - you make an excellent point as always - I have a client I am working with and we still have had to switch since she suddenly decided to go with a coop - 

Nov 27, 2018 04:58 AM #22
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Doug Dawes - not everyone is as fiscally responsible as you are!  I agree about the auto pay - it is a godsend 

Nov 27, 2018 05:00 AM #23
Rainmaker
3,245,034
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Lise- - -over the course of my time in real estate, I haven't encountered many clients who have been seriously credit challenged but I find knowing any issues upfront is best. For the transaction and more importantly for the person. I have also found a good lender is one who will/can look at the bigger picture/goal if a credit issue is the reason. 

Nov 27, 2018 05:32 AM #24
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Hi Michael Jacobs - I am in the same situation as you - most of my clients are in pretty good shape financially - but a good lender can do magic - and should be willing to - otherwise - get a new lender - right? 

Nov 27, 2018 11:10 AM #25
Rainmaker
321,725
Elisa Uribe Realtor #01427070
Golden Gate Sotheby's International - Oakland, CA
California Homes for Sale in the East Bay

Great article Lise! This is a good reference for my clients who need help in this area.  I am so thankful to have been working with one of the best loan officers in CA.

Nov 27, 2018 02:44 PM #26
Rainmaker
216,862
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management

Lise, thank you for the post. It represents a very comprehensive overview of the role of credit in the real estate investment process.  Great primer on credit, insightful and empowering.

Nov 28, 2018 04:10 AM #27
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

William Collins - thank you so much for stopping by - I really appreciate your comments

Nov 28, 2018 04:47 AM #28
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Elisa Uribe Realtor #01427070 -thank you for your comments - Isn't it wonderful to have a great loan officer - I could also recommend John Meussner - he is a great blogger here on Active Rain and an even better lender - and he is based in CA - although I know that he can do mortgages in many states - including here on the east coast. He is very informative, informed and helpful! 

Nov 28, 2018 04:49 AM #29
Rainmaker
784,779
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

We have had several success stories with people who have cleaned up their credit and targeted some of the easiest blemishes on their record with ease.  

Nov 28, 2018 01:18 PM #30
Rainer
278,196
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

Ahhh, the issue of credit repair. Since 1995 in the lending biz I have had that discussion with many but I will not comment. 

Nov 29, 2018 07:33 AM #31
Rainmaker
1,218,568
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Your statement ... "If your lender will not or cannot help you clear up inaccuracies on your credit report and give you advice on how to improve your score by taking other steps, then you probably are working with the wrong lender." ... is definitely true, Lise Howe.  And I completely agree that in most cases, your LO can provide the info and guidance to successfully improve and repair your credit.  That an actual credit repair company is unneeded and an unwarranted extra expenditure.  The potential borrower/buyer must be willing to follow instructions, stay involved, and work consistently towards their goal, however.  

As an LO, I so appreciate you sharing this info ... and the advice to seek the help of our services proactively.  Thank you,

Gene

Nov 29, 2018 10:39 AM #32
Anonymous
mary summers

I have been hearing a lot about these credit assistance company, and how they have actually helped people fix their credit score and clear their debts too, although I was a bit skeptical about trying them because of the fear of scammers, but then again my credit score was at 315, and I didn’t have anything to lose and so I gave them a try, I was shocking enough that in less than a week they improved my credit score to 680 and since then it has been going up, right now im on 780, they also cleared my debts too, and they also taughtme how to keep my credit score up too, so why not give them a try rather than waste time and watch your credit go bad the more, you can email them at creditassistancecompany@gmail.com, and they would get right with you, thank me later

Dec 03, 2018 02:06 AM #33
Rainmaker
3,192,007
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Credit repair is a great topic....and it is an area we address with our buyers to help them get the best interest rates.

Apr 11, 2019 04:53 AM #35
Rainmaker
3,525,914
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Lise. This is terrific and I am glad it was featured. This would be a great handout.

Apr 11, 2019 05:58 AM #36
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