There Is No Shortcut to Credit Restoration

Got a Low Credit Score? Avoid Quick-fix Solutions

Claims like "We can improve your bad credit instantly, no questions asked!" "Contact us to make a new credit identity - legally" or "Credit problems? Fix them in a month" are common in TV ads, radio, flyers, emails, and online space. According to the attorneys at the Federal Trade Commission (FTC), no legitimate credit restoration company claims credit repair is a quick-fix solution.

There is no shortcut or quick fix to improve your credit. It takes time, conscious effort and following a stringent debt repayment plan. You need to know your rights before hiring a credit restoration services company. Some people say that you don't need any help to fix your credit and it is advisable to try it yourself. However, that will involve a lot more time and effort on your part. 

Your Rights

In any case, you need to be aware of your rights:

- Each of the three nationwide credit bureaus - Equifax, Transunion and Experian are obligated by law to provide a free credit report to all consumers once a year. You can order the three free credit reports at the same time or leave a gap of 3-4 months between each report. The latter is a better idea because it allows you to monitor the progress of your credit status periodically.

- You are entitled to receive a credit report for free if any organization has taken an "adverse" financial action against you. This includes denial of credit, insurance application or employment. You need to ask for the report within 60 days of receiving the notice of an adverse action. People, who are unemployed, are allowed one free credit report if they are planning to find a job within 60 days. People on welfare and whose report is inaccurate due to fraud, such as identity theft are also entitled to a free credit report.

- There is no cost associated with disputing inaccuracies in your credit report. You can raise a dispute both with the credit bureaus and the information source that provided some of your personal financial details.

What to Do When You Need a Real Solution?

If you are wondering, "How can I restore my credit now?" it may be a good idea to delegate this task to seasoned professionals with years of experience in credit restoration. Legitimate and reliable credit restoration companies would first scan through your credit report and leverage their years of experience to find items that can be disputed successfully. They not only detect inaccuracies and errors, but also verify their authenticity with the concerned parties.