What Type of Business Is Credit Repair?

Introduction to Credit Repair Services

• Credit repair services create opportunities for aspiring entrepreneurs.
• The credit repair business is booming as many Americans struggle with various debts.

Importance of Credit Repair

• Credit scores measure creditworthiness.
• Credit repair companies work to improve your score by negotiating removals of negative marks.
• They are governed by the Credit Repair Organizations Act, which gives you certain rights.

Process of Credit Repair

• The process identifies inaccuracies on credit reports and rectifies them by disputing items with bureaus and creditors.
• This can involve sending communications and negotiating on your behalf to improve your financial profile.
• It typically takes 3-6 months to boost your score by 100 points.

Comparison with Other Financial Services

• Credit repair is different from credit counseling, which involves having a specialist develop a plan to address money problems.
• It also differs from debt relief, which negotiates directly with creditors to reduce what you owe.