Credit repair refers to fixing bad credit that could have declined for a number of differing reasons. This could be as easy as filing disputes for mistaken information with the main credit bureaus Experian, Equifax, and TransUnion.
It could be more involved if there has been identity theft and resulting damage to your credit report. In this case, more significant work is required to clear up credit A third type of credit repair involves addressing key financial issues and lenders’ concerns.
It requires both effort and time to correct inaccurate information on credit reports. Third parties are not able to remove information held by the credit reporting bureaus. Instead this information (if it is inaccurate or falsely represented) may be disputed. This can be done by you personally or a credit repair company on your behalf.
You or a credit repair company can file disputes when you find missing, inaccurate, or incomplete information on your credit reports. Catching this information and getting it corrected is critical in repairing your credit. Other ways that you can repair your credit focus on addressing your own credit activity and credit utilization.
Just getting your credit card balances down to 30 percent or less of your total available credit will add significant points to your credit score. The credit utilization is the second most important factor of your credit score (at a 30 percent component).
You can also repair your credit by making timely payments, which improves the most important component (that makes up 35 percent of your score).