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Fixing Credit

When Do You Need Credit Repair?

By April 5, 2022April 26th, 2022No Comments

A picture of a person holding out a credit cardHave you ever been turned down for a house or auto loan because of bad credit? Bad credit can hurt your chances of securing a loan and have several other adverse effects on your financial standing. Not only will your financial credibility and reputation suffer, but you will also not have access to liquid funds or quick loans. If you face this issue, there’s no need to panic.

There are ways to repair bad credit legitimately to improve your credit score, making you eligible for essential loans. However, it’s best to choose expert legal help if you’re facing a credit repair case. Our attorneys at Vilt Law, PC have extensive experience helping clients with issues related to bad credit and can give you all the assistance and support you need to win your case. Read on to find out more!

What Is Credit Repair?

A good credit score can open up crucial financial avenues for you. You will be able to get a loan or a new credit card and reduce your interest rates.

Credit Repair involves fixing your poor credit score by disputing erroneous information on your credit reports. Credit repair experts will help you find legally sound ways to remove information that hurts your score from your credit report. This restoration process helps improve your credit score gradually.

When Do You Need Credit Repair?

It’s best to opt for credit repair if you have a poor credit score. However, you do not always have ready access to your credit score, and requesting to view it too often might even negatively impact your score.

Besides your score, there are many other indicators that signal your need for urgent credit repair. Some of them are listed below.

1. You Have a Poor Credit Score

One of the easiest ways to identify if it is time to seek out credit repair services is to look at your score. A score below 740 is generally considered a sub-prime score. If your score has dropped below 650, you are due for urgent credit repair.

2. You Got Rejected for a Loan

Whether it is an auto loan or a house loan, a poor credit score can negatively impact your chances of securing funds. So if you have been turned down for a substantial loan recently, your poor credit score might have played a significant role.

3. Your Request for a Credit Card Was Denied

If you have a poor credit score, credit card companies can deny your request for a credit card. In this case, you can expect to receive an adverse action notice that details why your request was denied. You can request a free copy of your credit report if the notice states that your request was denied because of information on your credit report.

4. Your Interest Rates Keep Soaring

If your credit card issuers send you an interest rate increase letter, this can signify that you have poor credit and need credit repair. Your interest rate may go up if you have delayed your payments to your creditors or some negative information has come up on your credit report.

How Can You Repair Your Credit Score?

A professional holding a paper and pen and client with their hands on the table

If you are facing an urgent need for credit repair, you can do a few things to work through the issues.

1. Ask For a Free Credit Report for Review

Owing to the pandemic, many consumers experienced anxieties regarding their financial health. To help consumers, the Federal Trade Commission had issued a scheme to make free weekly credit reports available to consumers. Unfortunately, this scheme is only valid till April 2022. Still, even if you cannot avail of this scheme, we highly recommend requesting a credit report from your creditor to begin the process of credit repair.

2. Dispute Errors on Your Credit Report With Your Credit Bureau

The Federal Trade Commission has an excellent resource on their website, with detailed instructions on how to dispute errors on your credit report. Essentially, you have to send a request to your credit bureau to dispute the incorrect information on your report. The bureau usually takes 30 days to investigate your dispute, and you will then get a response.

3. Dispute Errors Directly With the Business Responsible

If you wish to contact the business that has provided inaccurate information to your credit bureau, you can. Send them a letter or email detailing the issue. You can then request the business to update the bureau and ask them to remove the wrong information from your report. Sometimes this process isn’t as efficient, and businesses may continue to report inaccurately.

Taking Urgent Credit Repair Action

The steps outlined above are a few ideas to help you get started with the process of credit repair. However, the primary challenge of this process is its legal complexity and lengthy wait time. There is no guarantee that the damaging information will be instantly removed from your report even after correctly identifying and resolving the relevant errors.

Depending on the case details and the lender, this process can be tedious. This would place you in a position of disadvantage when you are trying to secure a financial loan. Seek legal counsel from an attorney and get the help you need to repair your poor credit case urgently. Attorneys have detailed knowledge of how credit repair cases work and can help you come up with the best legal strategies to turn your case around. These experts will also guide you through the legal intricacies and help you save time and effort.

Having bad credit does not have to be a constant source of anxiety for you. Our legal experts at Vilt Law, P.C. in Houston and Chicago, can help with your credit repair case. This will help you regain access to financial avenues that might have been closed off for you. So, get in touch with us through our website or call us at (713) 840-7570.