What is credit history or a credit report (CR)? It is the record containing information about an individual or a company’s borrowing and repaying history; including information like current loans & payments, late payments, bankruptcy, etc. Credit history is calculated into a credit score which is used by lenders to determine a borrower's credit worthiness and likelihood of repaying their debts.
Credit reports and scores have a profound impact on a borrower/debtor's life. Having a good credit score in Montana increases the opportunities of borrowing money, landing a good job, renting an apartment or house, and qualifying for lower insurance rates. If a borrower’s credit score is too low to qualify for a loan, a job, housing, etc. Then they may be in need of credit repair.
What do credit repair companies do? Credit repair companies work with and for their clients to help remove negative errors and other inaccuracies that are hurting their credit scores. They can also assist in giving additional advice and support for other things that can be done to help improve credit scores. However, it does need to be said that there are many credit repair scams that consumers need to be aware of.
Common credit repair scams: that can attract people having credit problems are some of the fake ads like "Do you have credit problems? Don't worry! Rub out bad credit! Remove bankruptcy from your credit, 100% guaranteed!" In reality, nobody can guarantee the removal of negative information from a credit report. Legally these items can be reported on for 7-10 years, depending on the item. Consumer credit history is maintained by the 3 major credit bureaus that collect information from banks, loan companies, and other creditors.