Who is a Credit Repair Specialist?
A credit repair specialist is an independent or employed person in an organization, to help individuals improve credit scores. They are licensed to work as liaisons between credit bureaus and clients. Irresponsible, careless spending individuals, or people who have being victims of identity theft, need a credit specialist, to increase credit score.
Some credit reports contain clerical errors, misunderstandings or cases of mistaken identity, while others contain facts. To have an error on your credit report is costly and can influence your credit score, especially when you need to take out a loan. A single point below can make a difference between hitting a good, fair or worse threshold.
In cases where a debtor has a false financial credit report, or has fallen behind on payments due to illness or job loss, a specialist can negotiate with the creditors. A client with a low credit score but has a positive history, can be salvaged. The issue will be analyzed to maximize success and a specialist will help negotiate a settlement.
Like all professions, there are genuine and corrupt credit specialists. A genuine specialist assists client gain leverage on their financial situation. They also customize individual disputes by raising questions where necessary, while maintaining confidentiality. Corrupt specialist on the other hand is cheap, have no offices and launch disputes with automated form letters.
A Credit Repair Specialist will strive to repair your derogatory data, by raising disputes with creditors on every item in your report. Accurate data will however, remain on the report until expiry. The specialist has an obligation to ensure that a client’s tarnished reputation is repaired. A careless spender can be advised to operate two credit cards, and pay on time, to repair his image.
There are several requirements for someone who wishes to start a credit specialist business. Necessities include, a college finance or economics degree and communication and research skills on licensing policies. One must also investigate surety bonds required by the local law, gain membership in professional organizations for legal and networking purposes, and consult with a practicing credit specialist.
Alternatively, one can become their own credit specialist. Instead of paying someone a lot of money, and getting poor results, you can review your credit reports for errors. Begin by checking your personal information, creditor information, collection, previous or current credit accounts and lender information carefully.
Review the collection accounts for accuracy and the public financial records in cases of bankruptcy, liens or overdue child support. If there is an error, write a dispute letter identifying the items and explain the warranty for the correction. Send the dispute via mail for proof of delivery. Be patient while the creditor investigates and reports on the dispute. Waiting period is 30 days.
Your three digit score is determined by the collection and reporting of your financial history by credit bureaus. General guidelines on credit score have a basic formula based on 35% of your history on-time or on late payments, 30% available credit on your card, 15% the age of your credit line, 10% the interval between applications for new credit and 10% your performance in loan payment.
Share this:
Category: Credit Repair
