Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. A true credit report is vitally important for getting any type of financial help. Inaccurate information can cause embarrassing situations such as being turned down for a loan, credit card, job or possibly a lease or rental. It is advisable to have your credit report professionally corrected by a credit repair company before you apply for any loans, credit cards, employment or any other financial transaction that requires a good credit score.
A credit repair program helps clients to dispute inaccurate information on their credit reports. This prevents the adverse information from going onto your credit file which further lowers your credit rating. Most credit repair companies are able to provide services in the local area. There are also companies that offer nationwide positive identity repair support and solutions.
The credit repair process starts by the client making an inquiry to the credit reporting agencies. They check to see if there are any mistakes in the information they are receiving from the 3 big credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus receive the details from the credit bureau, the customers are sent a notice informing them of the mistakes. The credit report companies then investigate the claims and make certain that the errors are fixed.
Credit repair isn’t a simple task to accomplish, it takes patience and determination to manage disputes one . You’ll need to write or telephone your credit reporting agency at least one time to report the disputed information. There are many reasons why the credit reporting bureau may not remove negative information from your credit report, which range from errors to data that is not even yours. Your primary objective is to get the negative information removed from your credit report to improve your credit score.
Credit Repair isn’t a one-time task. It is a continuous procedure that needs to be addressed. When you hire a credit repair agency you should be prepared for one to two weeks of correspondence between you and the credit reporting bureaus. During this period you’ll be informed of the progress each agency has made in resolving the negative information. Once the adverse information has been removed from your credit report the credit repair service company will take over from there.
When dealing with credit repair you should make sure you read all agreements very carefully. Sometimes it can be more difficult to fix certain problems if the credit reporting agencies require additional data, such as verification of employment. Always make sure that the agreement is clear on what you are agreeing to rather than agree to terms that you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to consider disputing credit report errors. Many people don’t realize they even have problems with their credit until they apply for a mortgage or a car loan. For many people this process won’t be complicated. They simply want to make certain that the information is accurate in order that they can avoid paying high rates of interest or being denied credit because of incorrect information. If you find any incorrect or false information in your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the choice to utilize credit repair you must be proactive in monitoring your credit score and making sure all negative things are removed. If you end up consistently having high rates of interest or fees, you can begin to challenge those negative items with the credit bureaus. The credit agencies will attempt to verify the negative information by contacting the original creditor. In the event they cannot prove the item is inaccurate they’ll remove it. The challenge process takes a while and you might not have the patience to observe your score constantly but as soon as you start to see the numbers move in the right direction you’ll be glad you took the opportunity to utilize credit repair. Your credit score will begin to improve and you will have the financial power you need to get the loan or credit you deserve!