What Can Be Removed with Credit Repair?

Learn how to legally remove items from your credit report with this comprehensive guide. Find out what can be removed with credit repair and how it affects your score.

What Can Be Removed with Credit Repair?

Credit repair companies may promise to remove a difficult query from your credit history for a fee, but inquiries can only be removed if they are the result of fraud. Instead of paying a company to do it for you, you can dispute a fraudulent consultation yourself for free. With a positive title like “credit repair,” it's no wonder people fall prey to fraudulent practices by credit repair companies. They promise to “fix your credit” by disputing the negative elements in your credit report.

They say they can get any item from your report, but only real inaccuracies can be permanently removed and you can do it yourself for free. Credit repair companies make sure you know when these items are removed, but they don't let you know when they reappear. Most credit repair services offer a free consultation to review your credit reports and identify fruitful areas worth challenging. The credit specialist will review with you the different plans the company offers, what services each plan includes, and how much each plan will cost you.

The FICO 9 credit rating model, for example, does not include paid collection accounts in credit rating calculations. You need all three reports (one from each credit bureau, Experian, TransUnion, and Equifax) because creditors can report transactions to only one or two credit bureaus. If your collection account is paid and removed from your credit reports, the balance due will decrease and your payment history will improve, which will improve your credit score. If you detect an error or inaccuracy in your credit reports, you will need to file a dispute with the creditor or credit bureau reporting the information to have it corrected or deleted.

For what many consumers consider reasonable pricing, you can hire a credit repair organization to do the work for you. Upon receiving the filing of a credit report dispute, the Consumer Financial Protection Bureau says that each credit reporting company has 30 days to investigate the matter and decide what to do. Several firm credit checks over a short period of time are a red flag for lenders, indicating that you are applying for credit too often and potentially being denied. However, if you decide to hire a credit repair agency, keep in mind that there are consumer protection laws that regulate how they operate and what they can do.

What might seem like a simple and positive solution to your credit situation is actually a series of false promises that are likely to hurt your credit. From a credit rating repair standpoint, it's better to pay for a collection sooner rather than later, assuming you can afford it. The Credit Versio package contains provisions for importing your credit reports and helping you identify the elements for a potential dispute. You just need to be willing to spend time reviewing your credit reports for negative or inaccurate information, contacting credit bureaus to dispute that information, and follow up on those disputes to ensure they are being investigated.

Your credit score can be a passport or an obstacle to a better lifestyle, so you may want to legally remove items from your credit report. You will need to send the same dispute letter to the three major credit bureaus Experian, Equifax, and TransUnion if the negative information appears on your three credit reports. The information provider will review the credit report dispute and report to the credit reporting agency. This includes knowing how to dispute incorrect information on your credit report, as well as knowing that you probably need to pay off high-interest credit card debt before installment loans.

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