How Credit Repair Companies Work?

October 07, 2021

Having poor credit can ruin your overall financial health. It can make borrowing money more expensive and sometimes even impossible. That’s because a lower credit score means higher interest rates, which can make buying a home or a car difficult. It’s time to talk to a trusted credit repair company in Dallas, TX to improve your numbers!


How can credit repair companies in Dallas, TX help you?


Credit repair companies can help improve your credit score for a small fee. They’ll work with credit reporting agencies on your behalf, taking a lot of stress off your shoulders. Here’s how the best companies work:


  • They will clean your credit records.


Poor credit often stems from unexpected events such as work, health, and divorce issues that can result in late payments, charge-offs, repossessions, foreclosures, and bankruptcies. Credit repair companies will review your financial history and negotiate with creditors to remove certain derogatory marks from your records whenever possible. This may involve requesting to validate your information and writing cease-and-desist letters to debt collectors.


They will also use federal laws such as The Fair Credit Reporting Act, Health Insurance Portability and Accountability Act, Fair Debt Collection Practices Act, and many others to permanently remove erroneous and inaccurate information on your records.


  • They will set you up for a brighter financial future.


Once your credit score is improved, it’s important not to make the same mistakes that caused it to plummet in the first place. A credit repair company can put you on a plan and connect you to the right institutions to help you rebuild your credit.


What cannot credit repair companies in Dallas, TX do for you?


Credit repair companies are governed by the Credit Repair Organizations Act (CROA), defining how they operate. They should not and cannot:


  • Advise you to make false statements to credit reporting agencies
  • Charge you for services that have not been fully rendered
  • Give you a 100% guarantee that they can remove information from your credit reports


If a credit repair company offers to do any of the above, that’s a red flag. Walk away and find another company!