Often the credit history of an individual may be damaged for no fault of his. It could be due to an unavoidable illness or accident. Some times there may a clerical or data processing error at the credit reporting agency. Not only does the affected person have to pay a higher interest rate, it could also affect his or her chances of getting a job.
However, credit repair is possible using the provisions of the Fair Credit Reporting Act to improve your credit score. Though the process is time consuming and cumbersome, there are several specialized agencies which can repair bad credit for a fee, which is nominal compared to amount saved in the long term.
The technique used by credit reporting agencies for fixing bad credit is similar , for each negative item in the credit report, the credit reporting agency is asked to furnish proof. If no supporting evidence is provided by the reporting agency, the negative item is removed, improving the credit score of the individual over a period of time.