Which third-party company negotiates with financial institutions on a borrower's behalf to try to remove negative marks from the borrower's credit history?

• A. Credit check
• B. Debit card
• C. Credit report
• D. Credit-repair service

Answer: (D)

A credit-repair service is a third-party company that negotiates with lenders on a borrower’s behalf to address negative items on their credit history. They review your credit reports, identify items that may be inaccurate or negotiable, and contact creditors or collection agencies to challenge those items, request removal, or reach settlements. They might try pay-for-delete arrangements or ask for account updates, but removal isn’t guaranteed, especially for accurate information. The key idea is that this type of service acts as an intermediary to try to improve the report by addressing questionable marks, rather than being the borrower’s own actions or simply possessing the report or payment tools. In contrast, a credit check is the process of pulling your credit history, a debit card is a payment instrument, and a credit report is the document that contains your credit history.