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Understanding credit repair

On Behalf of | Mar 31, 2023 | blog, Consumer bankruptcy |

According to studies, approximately 68 million Americans deal with bad or poor credit. For Tennessee residents with poor credit, buying a home, purchasing a vehicle, and various other tasks become impossible. Fortunately, credit repair options allow those with poor credit to rebuild their credit scores over time.

What is credit repair?

Credit repair is the process of repairing poor credit through any legal method. Before filing for bankruptcy, it’s a good idea to try at least to go through a credit report process. This process usually includes having mistakes removed from your credit report, paying back some debts, and taking other reasonable steps.

How long does credit repair take?

The credit repair process is not a quick one. It often takes three or more months for actions that improve your credit to appear on your credit report. However, removing incorrect data from your credit report takes less time, as most credit bureaus have mistakes removed within 45 days.

How much does credit repair cost?

Paying for credit repair services while dealing with credit problems may seem difficult. However, dealing with bad credit is more expensive than paying for credit repair. Credit repair companies charge different rates, so you should shop around.

What damages my credit score?

Some factors negatively impact credit scores, including:

  • Making late payments
  • Only having one type of credit
  • Too many credit applications
  • Using too much credit
  • Having a short credit history

Fortunately, three months of on-time payments can improve your credit score. While improvements are incremental, they do pay off.

Most credit repair companies offer free consultations, so if your credit score is low, reach out to some of those companies. Find out more about their services and pricing, and gather more information about how they can help you fix your credit.