Credit Repair FAQ's

Approved Credit Resources has spoken with thousands of clients and realized there are some questions that continually come up. Take a look, we hope this takes a little confusion out of credit repair and how credit repair companies can help.

How long does the credit repair process take?

It's not the answer most want to hear, but it is difficult to predict how long the process will take. Every clients credit report is unique and every situation will take different steps for rebuilding. The steps will vary in time. Client participation is a contributing factor and something we have no control over. We will guide you to success but some things are in your hands. Our average client stays with us 6 months and sees a substantial improvement in their credit profile.

If the negative item is mine, can it be deleted?

Some think that only inaccurate items can be deleted from their credit report. The Fair Credit Reporting Act (FCRA) specifically states that any item on your report has to be accurate and verifiable. This means that even if an item is yours, by law, a credit furnisher has to provide the proper information to verify the account or it has to be deleted.

Can't I just repair my credit on my own?

The simple answer is yes, we offer a DIY Credit Repair Kit if that suits your needs. You are hiring a credit repair company to leverage their knowledge of the FCRA in your favor. Credit Repair is a process and some, either do not have the time or just want a professional to follow through with the process for them.

Does it fit my budget?

The last thing you need is to get further behind on bills trying to fix your credit. One question we always ask a potential client is, “Are you current on your monthly bills”. We do this because it will not benefit the potential client if they continue to have late payments on their credit profile. If you are tired of bad credit you will find a way to cut expenses to fit a credit program into your budget. It just has to be a priority, if you are not 100% ready to make the necessary changes needed to fix your credit, don’t waste your money.

Should I just pay off collections on my credit report?

A lot of people think I will just negotiate the Collections on my report and everything will be ok! This is not true. Paying off a Collection does not boost your credit scores. The way the system or credit calculation views a collection has nothing to do with the balance, but the simple fact that it is a collection. Paying off a collection will help lower your Debt-To-Income Ratio, which may help in getting a home loan but has nothing to do with your actual credit score.

You can always ask for a pay for delete but most collection companies do not offer that anymore. By calling them you now have now verified the debt and the timeline can restart and be stuck on your report for seven more years. If you decide to settle, no collection company will delete it and it will state “Settled For Lesser Amount” on your credit report. This does not help your credit score, just your DTI.

The best approach is trying to get it deleted from your credit report first before looking at other avenues. Deleting it will lift your scores and lower your risk factors.

What is credit repair?

We speak to thousands of potential clients every year and the main question is, what is Credit Repair? The basic answer is improving your credit score by analyzing your report for inaccurate information and using the rights given to you by the Fair Credit Reporting Act (FCRA) to delete that information. The credit bureaus have to follow these laws but place the responsibility on the consumer to ensure their credit report is accurate.

Is Credit Repair a Scam?

There are laws set in place to guard your rights and certain guidelines all Credit Repair companies have to follow. Warning signs for credit repair scams include companies that claim it can guarantee a specific increase in your credit score or get rid of negative credit information on your credit report even though the information is accurate and verifiable. Do not work with any company that guarantees results, refuses to explain your legal rights, claims you need a new identity or asks you to misrepresent information.

Will deletions improve my score?

You have to think of it this way, rebuilding credit is what rebuilds your credit score. Payment history, credit mix and length of credit, accounts for 60% of your credit score. So in theory, you can delete all the items you can, but without the rebuilding portion it is difficult to get those needed score increases. Don't get me wrong, the deletions are a necessary evil and will increase your scores, but rebuilding history coupled with deletions is the only way to get you across the finish line.

Where does my score need to be to buy a home?

Every state has different lending guidelines and policies. Just know, the lower your credit score the more down payment you will need. You will also have a much higher interest rate and pay tens of thousands of dollars more over the timeframe of the mortgage. It's always best to get your credit scores the highest you can to receive better lending terms. Be sure to find a local mortgage lender you trust to walk you through all your options.

More information...

If you would like more information about credit and rebuilding your credit scores, visit our website:

Approved Credit Resources