Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. An accurate credit report is vitally important for getting any sort 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’s advisable to have your credit report professionally corrected by means of a credit repair company before you apply for any loans, credit cards, employment or any other financial transaction that requires a great credit score.
A credit repair program helps clients to dispute inaccurate information in their credit reports. This prevents the adverse information from going onto your credit file which further lowers your credit rating. Most credit repair companies have the ability to provide services in the local area. There are also companies that provide nationwide positive identity repair support and services.
The credit repair process begins by the customer making an inquiry to the credit reporting agencies. They check to find out if there are any mistakes in the information they are receiving from the three big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies get the details from the credit bureau, the customers are sent a note informing them of the mistakes. The credit report companies then look into the claims and make certain that the errors have been fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to manage disputes one by one. You will have to write or telephone your credit reporting bureau at least one time to report the disputed information. There are a number of reasons why the credit reporting agency may not remove negative information from your credit file, which range from errors to data that is not even yours. Your primary purpose is to have the negative information removed from your credit report to increase your credit score.
Credit Repair is not a one-time task. It is an ongoing procedure that needs to be addressed. When you hire a credit repair agency you should be ready for one to two weeks of correspondence between you and the credit reporting bureaus. During this period you will be informed of the progress each agency has made in resolving the negative information. Once the negative 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 issues if the credit reporting agencies need additional information, such as verification of employment. Always make certain that the agreement is clear on what you are agreeing to and never agree to terms that you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Many people do not 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 be sure the information is accurate so they can avoid paying high rates of interest or being denied credit because of incorrect information. If you discover any inaccurate 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 have to be proactive in monitoring your credit rating and ensuring all negative things are removed. If you end up consistently having high interest rates or fees, you can start to challenge those negative things with the credit bureaus. The credit agencies will try to check the negative information by calling the original creditor. In the event they cannot prove the item is inaccurate they’ll remove it. The challenge process requires some time and you may not have the patience to monitor your score constantly but once you start to see the numbers move in the right direction you’ll be happy you took the time to utilize credit repair. Your credit score will start to improve and you will have the financial power you will need to get the loan or credit you deserve!