A credit repair company can do various activities, but can they do everything you need related to your credit profile, like remove closed accounts?
You may have lots of credit repair questions as you seek to improve your credit profile. Write them down and ask them as it will affect VERY important things like future investments, jobs, and purchases.
Here is what you must know about credit repair companies and their expertise in removing closed accounts.
How do Credit Repair Companies Deal with Problems?
Credit repair companies deal with a variety of problems ranging from credit scores to credit inquiries.
For a new individual to know the answer to the question, can credit repair companies remove closed accounts, you need to understand what a credit repair company is, the purpose of a credit repair company, and other credit repair questions.
What is a Credit Repair Company?
A credit repair company is an organization that offers a service to try to make improvements in credit reports. The improvements are made in exchange for some amount which is known as the fee of the credit repair company.
Many credit repair companies are authentic and approved; hence, look for authentic sources to hire an individual from a genuine credit repair company. Also, get a feel for what credit repair companies actually do.
Often people think that credit repair companies are the same as credit counseling companies.
However, this is incorrect thinking. Credit counseling agencies/organizations tend to review your debts and finances for free.
In addition to this, they walk you through the process. They may offer different programs and other aspects as well.
How to Hire a Credit Repair Company?
Before searching “can credit repair companies remove closed accounts?”, It is preferred to contact a verified credit repair company having excellent and positive reviews in the field of credit scores and removing accounts.
There are many ways to verify a credit repair company. One of the ways most people use it is by reading reviews on various websites regarding the company.
In addition to this, look for the Consumer Financial Protection Bureaus’ Complaint Database website. If the website has positive reviews with minimum complaints, that is a possible green light for you to select the company.
Be aware of companies who say they can guarantee anything because this is not true most of the time and is a major red flag.
In addition to this, try working on your accounts and credit reports. If the company guarantees to remove all the harmful and unnecessary information, this is a potential warning sign.
In addition to this, do not believe in any guarantee and do not pay the company before getting your work done.
Luckily, credit repair companies are MUCH better now than they were years ago. We have reviewed many that are at the top of their game.
How Much Does a Credit Repair Company Cost?
This is one of the most frequently asked credit repair questions. Always look for your budget before hiring anyone from the credit repair company.
Usually, the cost varies from company to company.
When it comes to payment, do not pay the price before the company delivers your work. This is the universal law for credit repair companies. They cannot ask for payments before the work is delivered to their customers.
The payment may be charged at once after completing work, or you can pay the payment sequentially after completing each task. Most reputable credit repair companies charge a lower monthly fee of around $100.
These companies may enroll you into subscription services to pay monthly while the work is ongoing.
How Long do the Credit Repair Companies Take?
A credit repair company’s time to solve a dispute will vary. Any dispute ranging from removing accounts, soft inquiry, hard inquiry, and inaccurate information can be some of the issues.
The timeframes will vary according to the issue and how severe it is.
After your issue has been fixed, the credit bureau can take up to 30 days to verify the information.
In addition to this, the credit bureau might also reach out to the company that provided the information to verify the details.
The credit bureau takes five business days to send you the results.
This process usually requires a month to conclude the item being worked on and close that particular issue. As you can see it is time-consuming and is the reason why most opt to hire a third-party company.
Can Credit Repair Companies Remove Closed Accounts?
Up till now, we have noted a lot of information on how a credit repair company works. However, the question is whether credit repair companies can remove closed accounts.
One of the credit repair questions mostly encountered is the impact closed accounts have on the credit report. Yes, the closed accounts have a negative effect on your credit report.
On your credit report, it is helpful to try to remove all these similar types of accounts.
How to remove a closed account from your credit report?
Closed accounts have a drastic effect on your credit report. It is better to remove closed accounts from your credit reports.
There is a whole process to remove these types of accounts from your credit report that a reputable credit repair company has the expertise to do.
The credit repair companies only remove or modify the incorrect information to terminate the closed account.
To get the information updated or removed, you first need to dispute the data. To do so, you need to provide the details to the credit repair companies.
The credit repair company will then investigate with bureaus, verify the information, and send you the results within 30 days.
Once the closed account is removed, the company cannot add it back unless any significance of the data being incorrect is perceived.
Try writing a goodwill letter
A goodwill letter is one way to remove a closed account from your credit report.
It is a polite way to remove the closed account and is also different from the dispute as you are not challenging the accuracy. This has varying degrees of success.
Maintaining your accounts if they are not yet closed
One of the other credit repair questions is how to maintain your accounts from getting closed.
It’s better to keep your accounts open rather than removing closed accounts from your credit report and then facing a backlash or negative impact on your credit report.
Opening POSITIVE accounts are good for your credit. If you close them, it may not be as good as leaving them open. This is particularly useful if you do not have an annual fee on an account and it costs you NOTHING to leave open.
It also is an extra step to remove them if you find them to be impacting you negatively.
Ways You Can Maintain Your Accounts
Some of this is basic, but it is important to know:
-Do not indulge in debts and try to pay bills on time.
-Keep unused credit accounts open by staying a bit active.
-Try to keep your debts low; do not overdue loans, and don’t apply for credit cards back to back in a short period of time.
Read the reviews of the best companies out there prior to hiring a credit repair company.
Think about how their processes work.
Like, how much time they take for the service, their costs, and their way of working so that you don’t face issues in communicating with them.
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Paul Martinez is the founder of BendingDestiny.com. He is an expert in the areas of finance, real estate, and eCommerce.
Join him on BendingDestiny.com to learn how to improve your financial life and excel in these areas. Before starting this blog, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.