What is Credit Sweep, and how does it work?

 

A credit sweep refers to an action taken by a credit repair company that claims to "sweep" your credit report and refute all the negatives at once. The check will claim that the item is counterfeit, usually due to identity theft.

However, credit checks are illegal unless all items on your credit report are fraudulent (which is unlikely). Although credit card fraud statistics show that fraud cases are rising, credit checks are not the answer.
 

It is important to note that all actions carried out by credit repair companies can be carried out independently, saving you thousands of dollars in costs. If your credit needs to be cleared, you can dispute individual issues and fix errors on your credit report.

This is how a credit sweep works?

Credit sweep programs typically encourage the ability to remove negative items from your credit report by debating each item on your credit report. This service is often charged at a high price by these companies.

Credit sweeps are not a smart strategy for rebuilding credit. As mentioned, this only works if all elements on your credit report are fraudulent, which is rare. You should also be able to prove identity theft with a police report, and if some items are not fraudulent, a credit sweep is illegal.

If you contact a credit repair company and they ask for prepayment or appear to be withholding information, don't contact the company. The Credit Repair Organizations Act prohibits this action and indicates that such a company is not on your side.

Line of Credit Sweep VS. Credit Check

Before proceeding, it is essential to understand the critical terminology differences. Credit sweeps are not the same as a line of credit sweep, and the latter refers to the automatic transfer of excess funds from a checking account to a line of credit sweep. This is done to pay off debt from idle funds automatically.

Like any other account service, credit clearing is an agreement between the bank and the customer. Credit repair agencies don't deal with this. Checking your line of credit sweep doesn't affect your credit score except for paying off debt.

Alternative to Credit Sweeps

There is no real alternative to credit checks. However, there are strategies you can use to clear your credit. They include:

Sending a pay for delete letter: You negotiate by demanding the removal of negative reviews in exchange for paying off your debt.
Goodwill letter: You want negative reviews to be removed as a goodwill gesture. This can work if you have good credit or the scar was caused by a minor mistake.
Refuting False Information: You must review your report for errors that could affect your creditworthiness.

Under the Fair Credit Reporting Act, any dispute not resolved by the credit bureau, lender, or collection agency within 30 days will result in the removal of the disputed item. If a negative review cannot be removed, it remains on your credit report for seven years.

What Does Authorized User Tradelines Credit Offer?
 

We are a credit repair company that goes beyond litigation, which is often ineffective. Our method is a pre-trial process used by lawyers that force lenders and bureaus to be responsive and increase success rates. Incorrect and unverifiable information can be removed, improving your credit score despite negative details such as bankruptcy and foreclosures. Changes we make can increase by 100 points or more in an average of 60 to 120 days.

To Get your no-obligation credit consultation, Contact us today!