I have been in the banking industry for 20 years. Credit is a major component of every transaction. After dealing with these issues, I am in a position to give good advice on repairing derogatory items and repair companies.

What should you do first?

Your first task is to acquire a copy of your report from the three major repositories. The major repositories of this information are Experian, Equifax, and Trans Union. You are entitled to a free annual copy of all three. This may seem obvious, but do you have a recent copy all three reports? Also, you will need to access all three scores. Scores are calculated differently by each repository. You may have a good credit score on one, but bad scores on others.

Many reports contain obvious errors that can be fixed immediately. This is how to repair bad data fast and also improve your scores. When making corrections, be sure to correct the information on all three reports. The major bureaus do not share information. If you correct a mistake on only one bureau it will not be corrected on the others.

If you have good overall report, but you need to repair a bad score, take a careful look at the amount of money you owe. If your charge cards are at or above the maximum limit this may give you a bad score. It may not be necessary to pay off your charge cards, but paying down the balances or increasing the maximum limit may result in a greatly improved score. One common mistake is closing a paid charge card. Leave the card open. The relationship between your maximum balance and balance owed will raise your score. If you close the account the effect will be negated. This may result in a lower score.

Do credit repair companies work?

Based upon my experience, these companies do work. My clients utilize the best repair companies. There are companies that charge high prices and do not complete the work as promised, but there are also legitimate repair companies.

Legitimate repair companies are highly rated by the Better Business Bureau. They guarantee their work and the initial consultation is free. They will have in depth knowledge of your rights. The major bureaus are regulated by the Federal Trade Commission and they must adhere to the Fair Credit Reporting Act. The burden of proof concerning bad data is not with you. The burden to prove the accuracy of the data is on the bureaus.

Can legitimate repair companies remove accurate adverse data?

Absolutely!

The best repair companies can help to repair your credit. They also have a good track record of successfully removing negative items that are correctly reported. They use your rights to get these items removed.

Mark G. Robinson Sr. I have been in the financial field for 20 years. My advice on credit repair and repair companies is freely given.