A credit repair service helps to correct the credit report of your business. A credit report with negative information is not good for business because it can lower your credit score. This will affect your ability to access credit in the future.
These negative items in a company’s credit report could be accurate. They could also be a result of errors. If the negative items are accurate, your business needs to build its credit score.
However, if the information in your business credit report is not accurate, you need credit repair services to correct the errors. Credit repair services will help you evaluate the information in your report and gather evidence to dispute the errors.
Companies that offer these services are committed to ensuring all errors are removed, and your business has a good chance of getting credit.
A team of professionals can help repair your credit report and provide you with financial education and tools to understand your credit reports and credit score. Here is what you need to know about credit repair services for your business.
How Can Credit Repair Services Help Your Business
When you seek credit repair services, professionals can help smoothen the process of finding errors and getting documents from the bureau. Credit repair services help your business correct such errors and mistakes in the following ways.
1. Get Your Credit Card Report From the Bureaus
The first step to repairing your business cards is to obtain credit reports from the three bureaus. Companies that offer the best credit repair services evaluate all the reports they obtain from the bureaus.
They review all the reports because each document might contain different information. This is because each bureau has its own data furnishers or sources.
The sources can be banks, loan institutions, credit unions, and credit card issuers. Not all these sources report to all the bureaus.
A specialist from the credit repair company will help you review your reports and determine if they can help your business.
2. Identify Errors
A company that offers credit repair services thoroughly evaluates your credit report and looks at each information in detail. This enables the experts to identify mistakes in the reports.
Some of the things the experts look at are payment history, any expired and negative items, and duplicate accounts.
If there are errors in your credit report, the team will collect documents that help support your dispute and send them as evidence to the bureaus. The proof will help the bureau determine if the items causing a dispute should be removed.
3. Dispute Negative Items On Your Report
Credit repair services involve making disputes on your behalf and keeping you up to date with the progress of the proceedings. People who handle these disputes are qualified attorneys who understand the law and trade.
They are experienced and effective in handling such cases, which increases your chances of getting a favorable outcome in your situation. These attorneys apply federal consumer protection laws that will help improve credit score history.
After all the disputes are closed, you will receive a copy of the new credit report. A credit repair company can
- Understand your credit report
- Understand how your credit score is calculated
- Understand how to boost your credit score
What Causes Errors in Your Credit Report?
Inaccurate information in your credit report can hurt your business and make it difficult for you to access credit. Such reports give you a bad credit score. It is important that you know which kinds of errors may lead to inaccurate reports. These errors can occur in the following ways, namely.
1. Missed Payments
If you were trying to pay off your debt and you had an arranged payment plan, an error might occur in your report. The credit report can show a missed payment you already made on time. Filing a dispute with the bureau or lender will help solve the problem of a missed payment.
2. Inaccurate Account Status
An account you have paid in full might not be reflected in your credit report. For example, an account may read “settled in full” and not “paid in full.”
Another error that can occur is when an account that is closed is reported as an open account. You can also be reported as an owner of an account when you are a user and not an owner. Such errors can be identified and corrected if supporting evidence proves they are inaccurate.
3. Wrong Personal Information
Some personal information in your credit report might not be accurate. For example, wrong name, address, or phone number. You may also find an account that belongs to someone else with the same name as your name.
4. Re-Aging error
Re-aging is when a debt collector changes the dates of an account and makes the account look like a new debt. This causes the account to appear on your credit report longer than it should.
Such accounts appear as a new debt in a credit report which is not allowed according to the Fair Credit Reporting Act. Re-aging an account can hurt the credit score of your business. If you encounter such errors, provide evidence that can help you correct the problem and improve your credit score.
If the information in your credit report is negative and inaccurate, credit repair services can help you delete it from your report. This can positively impact your credit score.
However, credit repair services do not guarantee to improve your credit score if the negative information in your report is true. Many people see a rise in their credit scores when errors are corrected.
After verifying that the negative information is inaccurate, you may need professional credit repair services to help your business raise a dispute. This is because you may have a wide range of disputes, or the disputes may not be straightforward for you to handle.