How a Credit Repair Firm Increases Your FICO Score

Nov 20, 2019

It’s a good idea to want to know what a credit firm does to boost your FICO score from poor to desirable.

Undesirable credit is detrimental to your financial well-being if you live in the US which explains the emergence of credit repair firms. But with cases of fraudulent credit firms on the rise, consumers should be curious to understand the techniques credit repair firms use to improve credit status.

We sampled some of the common repair techniques to help you understand the most common techniques credit repair services provider use.

Credit Repair Techniques Companies Use

Here are the four ways credit firms help eliminate errors in your credit report.

  1. Re-aging the debt

The act of re-aging a debt involves correcting a debt’s date of last activity in a credit report to better its score.

A debt collector can easily make a mistake when writing the date of last activity on a debt. Changes should be made every time you make a payment towards a debt whether in full or in part.

The credit company follows up with the responsible parties to fix these errors.

  1. Writing an official Dispute Document to file claims

The credit firm writes an official dispute document and sends it to the responsible parties by mail or online.

The document explains the nature of the error and includes some proof to back up the claim.

After that, there are 3 possibilities;

Credit Bureaus will; (1) give a positive reply (a correction and a better score), or (2) a negative response (a disqualification notice for your request, and status remains the same) or (3) No response (automatic cancellation of the request, usually within a 30-day window.

You may not be familiar with this claim filing process, but an experienced firm knows exactly what to do.

  1. Eliminating time-barred debts

States have a statute of limitations on the time period a debt collector can follow a debtor to try collecting the debt or through a court case.

The time limit varies by state, but 3 to 6 years is common in many states, with possibilities of decade-long limits. After this period, the debt becomes “time-barred” and cannot be pursued in any way.

The credit repair firm follows up to confirm and eliminate all time-barred debts leading to a boost in your credit score.

  1. Opting You Out of the credit bureau system

The credit bureau system keeps track of all credit applications and credit disputes filed.

But many US citizens do not know one can opt-out of these systems that make it easy to track your debts and impact your score negatively. Credit fixing firms can help you opt-out of these systems to reduce the impact of debts in your score.

Final Words

These are the approaches your service providers will use to improve credit your scores. Most of these things are difficult to do on your own, which explains the critical role of these service providers in our lives.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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