Artificial Intelligence (AI) referring to a blanket term for a range of software and computer systems is being increasingly integrated in personal finance. Young people are leveraging AI to enhance their credit score due to its advanced data analysis processes, market trends predictions abilities and expert guidance. Furthermore, AI can help you in budgeting and paying your bills on time. The following article will explore the pros and cons of AI credit repair.
Advantages of AI Credit Repair
Credit repair process is a complex process to handle without any external aids. AI credit repair can significantly simplify the credit repair process for individuals. Here are the benefits of AI credit repair.
AI Allow you to Check Credit Score
Keeping track of your credit score is crucial to be aware of your financial standing and take necessary action to rectify the problem areas in your credit report. However, we are often at a loss regarding how to check credit score. AI generated chatbot ChatGPT can provide directions on where to find your credit score.
As per a recent survey, GPT 4- the latest version of ChatGPT provided relevant information was asked-“Where can I get my credit score?” It provided useful advice that include-
- check with bank or credit card issuer
- Check online finance apps
- Online platform where the credit bureaus share credit score for free. For instance, Experian is a popular tool where FICO shares credit scores for free.
- Check credit scores from the lenders
AI Provide Advice about Credit Score
By analyzing credit history and financial behavior AI can provide guidance regarding credit repair strategies. Based on its own research regarding the trends and patterns of your credit utilization, it can suggest several probable options that you can try to revive your credit score. For instance, it can advise you to clear your existing loans, timely bill payments and so on.
AI Helps to Dispute Credit Report Errors
Identifying and deciding the relevant issues to dispute requires much effort and expertise. There are multiple AI tools that can manage the entire credit report disputing process for you. It can identify the problem areas and automatically draft a letter and send it to the concerning credit bureaus. However, AI software may charge you a monthly fee for credit disputing services.
AI Enhances the Chances of Credit Acceptance
AI tools have reportedly improved the way credit score is calculated, enhancing the approval rates for the applicants. AI has the ability to use relevant information to make decisions regarding credit report and scoring, employ better risk assessment techniques and offer customized credit offers. It is also an effective tool for possible fraud detection.
Disadvantages of AI Credit Repair
While AI tools can offer a lot of help with credit repair processes, you must be cautious about the downside of using AI credit repair services. Here is some common concern related to AI credit repair.
Chances of Faulty Guidance
As per recent surveys, people who have used ChatGPT-4 to seek guidance for credit repair and credit score checking have expressed doubt regarding the credibility of the suggestions. There are several online suggestions on credit repair strategies that are often misleading. ChatGPT might collect that information while providing suggestions. Moreover, there is no way to understand if you have taken any wrong path following ChatGPT advice.
Errors in Credit Report Dispute Management
You might tend to rely on Chat GPT to manage your credit dispute process; however, it entails possible risk factors. The ChatGPT is continuously modifying itself and hence, there is always a risk of its ability to effectively identify the correct issues to dispute. Wrong dispute application can worsen your credit report status.
Without checking your credit report by yourself or by a certified credit repair company it is highly risky to depend on AI tools. However, you may use AI tools to draft a letter regarding the dispute by providing all the points that are to be disputed to the ChatBot.
Endnote
AI credit repair might be helpful for seeking general credit repair guidance. AI tools are used by creditors and various third-party organizations to analyze various aspects related to credit reports of their clients. However, for any non-professional person who does not have expertise to analyze the suggestions of the AL tools, AI credit repair can be risky. Seeking guidance from certified credit repair organizations is the best way to stay secure financially.
