Can credit repair hurt my credit?
Credit repair must be approached with a degree of caution. Done right, there is no risk involved in the credit repair process. The basic credit repair process involves sending letters to the credit bureaus. The bureaus will then contact the creditors who will check the validity of the information being reported and inform the credit bureaus of their findings.
Credit Repair Risk
The only significant risk in the credit repair process may occur in the case that you inadvertently dispute an accurate collection that is within the statute of limitation. If the collection is for enough money your file may be singled out by the collector for renewed collection effort. This is not a malicious tactic on the part of the collector, it is simply smart business. Your dispute has indicated to them that you are alive, and their ownership of the subject debt allows them to check your credit report for your current address.
Let Sleeping Collectors Lie
It is quite normal for people in credit repair programs to suddenly find that their dispute letters have woken up sleeping collectors. They may even find themselves being summoned to court which can lead to a judgment. This is the reason that at Sky Blue we research the statute of limitation on all collections as part of our credit repair program. Credit repair should always be done consciously. Our advice is to avoid automated dispute software that creates letters without distinction. Your credit is important and your credit repair process should be approached thoughtfully.