Everyone has, at some point in their lives, completely forgotten that a bill was due and missed a payment. Typically, if it's something simple, like the electric bill, the service provider will usually offer to add it to the next month's bill and allow you the time to get it sorted. However, late payments on a credit-related account from a financial institution can have serious repercussions. A single missed payment on a credit card that goes more than thirty days overdue can drop your credit score by up to one-hundred points–or more.But, what if you’re sure you didn’t miss any payments and applied for a loan? As part of the application, the provider will pull your credit report and find a notice that states your account missed some credit card payments.

This is where the process of credit repair comes in. In today’s article, we’ll examine what a credit report is and who tracks your reports. We’ll also talk about how your credit can be repaired by the best credit repair company in Dallas so that you can obtain the loans you need. 

What Is a Credit Report?

Each time you take out a credit card, a loan, or a mortgage, a notice is sent to one or all of the three credit reporting agencies in America–Equifax, Transunion, and Experian. The credit reporting agencies then examine several factors, including how many accounts you have open, how much money you owe, your monthly payment, if you’re maxing out your credit cards, and if you’ve missed any payments. 

Additionally, if you’ve ever been evicted for non-payment or had any other financial misunderstandings, there may be accounts that have gone into collections and are listed on your credit report, as well. Based on all the above factors, they will assign you a score somewhere between 300 and 850–the higher the score, the better. Typically, lenders like to see a minimum credit score in the mid 600s before granting a loan to someone. 

Having a higher credit score can mean some serious savings when asking for a loan. For example, if you can get just a 1% lower interest rate on a $300,000 thirty-year mortgage loan, you will save $60,000 over the life of the loan.

What Is Credit Repair, and How Can I Know It’s Legitimate?

Data breaches happen every single day–account info gets leaked, lost, mishandled, and misplaced. This leads to inaccurate information being reported to the credit agencies, and your credit getting wrecked. 

Credit repair companies come in when there are discrepancies on your credit report. The process is essentially disputing these to have them removed from your credit–this process can be done by oneself, but is intensely time-consuming, as it involves waiting for hours on hold with financial institutions and credit reporting agencies and then filing paperwork to have warehouses searched to verify records.

If you’re wondering whether or not legitimate items, such as a bankruptcy, can be removed from a credit report–the short answer is: no. However, if you maintain good standing on other accounts, your score will rise over time.

Any company that promises they can have any legitimate item altered or removed from your credit report is offering false promises–they may offer things such as a “credit sweep,” during which they dispute every single item on your credit report and create headaches with companies with whom you are already in good standing. 

It’s also advisable to stay away from anyone who promises to set you up with a brand new credit profile–this is typically identity fraud, or it will involve offering you extremely predatory loans while promising to make your problems disappear. 

What Credit Repair Can Do for You?

Legitimate credit repair takes the time-consuming process of disputing items out of your hands; a qualified credit repair company, like The Phenix Group, can offer insights and advice on how to improve your current credit score by altering your own personal financial habits. 

Once your credit has been repaired, you can apply for the loans you need with the confidence of knowing that not only will you be approved, you’ll be saving yourself thousands of dollars in interest rates in the process. 

Also read more about credit repair is legal in all fifty states.