Credit Repair

DEFINITION of 'Credit Repair'

Credit repair is the process of fixing a bad credit report, for whatever reason it deteriorated in the first place. It may be as simple as fixing mistakes with the credit agencies. Identity theft may require extensive credit repair work. The second form of credit repair is to deal with fundamental financial issues, such as budgeting, and begin to address legitimate concerns on the part of lenders.

BREAKING DOWN 'Credit Repair'

A number of businesses claiming to do credit repair have sprung up in recent years, and while some are legitimate, others are not. In some cases, credit repair may require legal as well as financial expertise. Depending on the extent of the problem, it may require simply cleaning up misunderstandings, while in other cases professional intervention is needed.

RELATED TERMS
  1. Credit Repair Organizations Act ...

    A federal law passed in 1996 that requires companies offering ...
  2. Credit Review

    A credit review refers to the periodic reviews conducted by creditors ...
  3. Jamming

    A scam perpetrated by bogus credit repair firms that involves ...
  4. Extraordinary Repairs

    Unusually extensive maintenance work performed on a piece of ...
  5. Credit Rating

    An assessment of the creditworthiness of a borrower in general ...
  6. Trade Credit

    An agreement where a customer can purchase goods on account (without ...
Related Articles
  1. Personal Finance

    Promises To Fix Credit Problems

    Don't get caught believing these "too good to be true" promises. Learn the signs of a money scam and keep your wallet safe.
  2. Budgeting

    7 Tips To Bounce Back From A Credit Score Disaster

    Find out how to repair bad credit in seven simple steps.
  3. Credit & Loans

    Credit And Debt Management: Repairing Credit

    by Cathy ParetoRepairing your credit when mistakes or unfortunate events in your past have negatively impacted your credit score can be a slow and tedious process. Don't believe the hype of fast-credit-repair ...
  4. Credit & Loans

    5 Ways to Up Your Credit Score in 90 days or Less

    Getting that credit report glowing again may be easier than you think. Read on for some quick fixes.
  5. Insurance

    Credit Scams To Watch Out For

    More than 30 million people were victims of fraud in 2007. Will you be next?
  6. Credit & Loans

    How To Increase Your Appeal To Prospective Lenders

    Making a business eligible for loans/credit cards at the best possible rates requires crafting an excellent credit profile through the smart use of credit.
  7. Credit & Loans

    9 Ways To Improve Your Credit Score Today

    When it comes to finances, there are a number of goals that you might have established, such as saving money, paying down debt or new investments.
  8. Credit & Loans

    The Basics Of Lines Of Credit

    Lines of credit are potentially useful hybrids of credit cards and normal loans. Learn how a line of credit can help (and hurt) your finances, and how to find the best one to suit your needs. ...
  9. Credit & Loans

    6 Ways To Build Credit Without A Credit Card

    It's definitely possible – if a bit more complicated – to build a credit history without traditional credit cards. Just follow these steps.
  10. Options & Futures

    How To Establish A Credit History

    Can't get a credit card without a credit history, and can't get a history without a card? Break the Catch-22.
RELATED FAQS
  1. What is the difference between bad credit and no credit?

    The answer to this question will depend on what information (if any) is found on your credit report, such as any bankruptcy ... Read Answer >>
  2. Is it possible to have a credit limit that's too high?

    Avoid these pitfalls when working with high credit limits, and learn how to increase your credit score by increasing your ... Read Answer >>
  3. What's the difference between a credit rating agency and a credit bureau?

    Learn how to differentiate between credit rating agencies and credit bureaus, two industries that distribute valuable risk ... Read Answer >>
  4. What's the difference between a credit bureau and a credit rating agency?

    Learn the differences between credit bureaus that report on individuals' creditworthiness and credit rating agencies that ... Read Answer >>
  5. How accurate are free credit reports?

    Discover if a free credit report is accurate, how to access it through a major credit reporting agency, and what to do if ... Read Answer >>
  6. What are some good alternatives to taking out a line of credit?

    Read more about how opening a line of credit might not be the best answer for you and determine available alternatives if ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center