credit repair

Definition

The process of working with credit bureaus and creditors to improve a person's credit report as a way of increasing their FICO credit score. The steps necessary to improve a person's credit may be done by a single person or some type of credit repair agency. These steps usually include examining all the debt that a person has acquired and then devising a plan to reduce or eliminate the debt. Credit repair is especially important to people that are trying to receive better credit options including competitive interest rates.

Use credit repair in a sentence

You will need to find a way to take on a credit repair so that you know that you can start to borrow again soon.

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I was looking to buy a house and was told that I should visit a credit repair specialist so I could make sure that I get rid of any negative items on my credit.

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By using credit repair techniques, such as paying debt on time, asking lenders for improved lending terms, or refinancing debt to make interest rates more manageable, a borrower can improve his or her FICO score, thereby making new lending easier to obtain and insuring more favorable debt terms on future transactions.

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