Can I pay someone to fix my credit score?

Jul 2, 2024

It is well acknowledged that the better your credit reports and credit scores, the better the interest rates and terms you are likely to receive from lenders and other service providers. Solid credit reports and scores imply a lower level of credit risk, which may lead lenders to feel more comfortable offering favourable conditions. If you have bad credit, lenders are less likely to offer you the best prices.

Credit repair helps to correct errors on your credit report. It is crucial to understand that credit repair will not remove legitimate negative marks such as late payments or outstanding debts. It can, however, fix problems such as fraudulent accounts, incorrect addresses, misspelt names, and other typos.

Can someone fix my credit score?

Yes, companies and individuals provide credit repair services for a fee, assisting you in detecting and contesting inaccuracies on your credit report, negotiating with creditors to remove negative marks, and advising on how to improve your credit score. However, investigation is essential for avoiding fraud and bogus firms. These services can be beneficial, but it is ultimately your responsibility to make smart financial decisions.

A credit repair company will check your credit report for problems, including typos, misspelt names, and incorrect addresses. They then tell credit bureaux to fix the errors by delivering a highlighted copy of the report. Credit bureaux must evaluate these issues within a certain time frame, and if the original creditor fails to produce adequate documentation, the bureau must erase or update the false data.

Credit utilisation, credit age, on-time payments, and enquiries all have an impact on your credit score. Credit restoration firms cannot:

  • guarantee score increases.
  • Promise an immediate score increase.
  • Remove all accurate negative facts.

Beware of “experts” who claim they can do any of the above. Professional credit repair services aim to make your credit report accurate, and any score improvement is a bonus from correcting inaccuracies.

How Much Does Credit Repair Cost?

Credit repair firms in Australia charge a fee to help you improve your credit report or score. They normally charge a monthly price of roughly $75, which might vary depending on the company and the features you select. Some organisations may additionally charge a fee each item deleted from your credit report, which can be $50 or more per credit bureau. It is crucial to remember that these expenses can add up.

How to Fix Your Credit Without Paying

You could do this for yourself if you have the time and inclination. Credit repair companies don’t work for free after all. Under Australian law, you have the right to dispute any incorrect information on your credit report and have it amended or erased if it is discovered to be inaccurate.

  • Submit your request online

If you have been denied credit, had a credit application turned down, or had your credit terms changed as a result of a credit report, you may be entitled to another free copy within 90 days.

The more information you provide, the faster we can investigate. If you are seeking a correction on behalf of someone else, please include the requester’s information in addition to your own. You need to provide the following identity information:

  • Name
  • Date of Birth
  • Current Address
  • Previous Address
  • Driver’s Licence
  • Current Job

You will also need to submit information on the necessary repair. Please include the following information when disputing an entry:

  • Account reference numbers and credit provider names.
  • Explain why you are opposing the entry, and provide any relevant documentation.
  • Equifax investigates

The Customer Resolutions team will investigate your request within 30 days and respond in writing. They may, however, notify you of a delay and request to extend the time if our enquiry is not completed.

If the appropriate information is provided, it may be as simple as us making the necessary changes, such as altering a default to ‘paid’ or erasing a decision.

  • Equifax contacts the credit provider

If necessary, we shall contact the credit provider on your behalf to confirm the accuracy, or otherwise, of the rectification request.

  • Equifax reviews the credit provider’s response

Equifax will analyse the credit provider’s answer and update your credit report accordingly.

  • Equifax finalises the investigation

If a correction is required, Equifax will send you a letter confirming the change and an updated copy of your credit report. Equifax will also notify any credit providers who have received your report within the last three months about the rectification. This procedure is required by the Credit Reporting Code.

If no adjustment is made, Equifax will explain the investigation’s findings and why the repair was not implemented. If you are dissatisfied with the conclusion of your consumer credit enquiry, you will be sent a ‘What You Need to Know’ leaflet describing your rights.

Final Thought

Paying a credit repair company to “fix” your credit report is generally a waste of money because you can challenge errors yourself for free. Credit information will only be updated or removed if it is erroneous.If you believe there are problems on your credit report, Australian law gives you the right to have them checked and fixed. You can contact credit reporting companies directly to dispute issues.

Credit repair services can be costly, often costing hundreds of dollars, and they are not legally obligated to delete material from your report. It is more cost-effective to save money and resolve conflicts yourself for free.

 

B M Peachey

B M Peachey, has over 15 years of experience investing in property and the stock market, in both New Zealand and Australia. She has a post-graduate degree, with qualifications in Finance and Mortgage Broking and in Accounting and Bookkeeping. She is passionate about ensuring people have access to credible, reliable, and easy to understand information to help them get in control of the life they REALLY want to live.<

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    Disclaimer: The information in this article is general in nature as it has been prepared without taking account of your specific objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.