Wednesday, 19 July 2023

How does credit restoration work?

You’ve seen the ads claiming to be able to completely repair your credit report, but is credit restoration too good to be true? How do they do it?

Credit repair companies collect information from you and do their own research around the circumstances and causes of your negative listing. Then they compare all this information against the legislation to identify contestable reasons why the listing should be removed from your credit report. Once they prepare your case, they negotiate with credit providers and credit reporting agencies on your behalf to get your listings removed.

How long does it take?

Nobody can promise you a particular timeframe to remove a negative listing from your credit report -results will depend on many factors, including how fast you provide the credit repair agency with the information they need, the overall complexity of your case and if the matter needs to be escalated to an external body.

What listings can be removed through credit restoration?

Examples of negative listings that can be removed include:

  • Overdue accounts
  • Defaults
  • Court listings
  • Judgements
  • Clear-outs
  • Crossed or linked files (cross references and possible matches)
  • Multiple identities

How to choose a credit repair company?

Many credit restoration companies are a scam, so do your research before you sign up. It’s best to look for three things:

  • Longevity: Check how long they’ve been in the market –the longer the better
  • Reputation: Check their online review scores (e.g. on Google and Product Review) and how many reviews they have – a higher number of reviews will give you a better idea on how good their service is
  • Money back guarantees: Nobody can guarantee the complete removal of a black mark, but if they offer a money back guarantee, you can go in with nothing to lose

Do you need help with your credit report?

If you have a negative listing on your credit report, there is help to turn things around and completely restore your credit history.