Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a individual’s credit report. An accurate credit report is vitally important for getting any sort of financial help. Inaccurate information can cause embarrassing situations like 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 applying for any loans, credit cards, employment or any other financial transaction that requires a good credit score.
A credit repair program helps customers to dispute inaccurate information in their credit reports. This prevents the adverse information from going onto your credit file which further lowers your credit score. Most credit repair companies are able to provide services in the community area. Additionally, there are companies that provide nationwide positive identity repair service and solutions.
The credit repair process starts by the customer making an inquiry to the credit reporting bureaus. They check to find out if there are any errors in the information they are receiving from the three major credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies get the details from the credit bureau, the customers are sent a notice informing them of the errors. The credit report companies then investigate the claims and make sure the errors have been fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to handle disputes one . You will have to write or call your credit reporting bureau at least one time to report the disputed information. There are a number of reasons why the credit reporting bureau may not remove negative information from your credit report, ranging from errors to data that’s not even yours. Your primary purpose is to have the negative information removed from your credit report to increase your credit score.
Credit Repair isn’t a one-time task. It is an ongoing procedure that has to be addressed. When you hire a credit repair service you should be prepared for one to two weeks of correspondence between you and the credit reporting agencies. 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 that the credit repair service company will take over from there.
When dealing with credit repair you should make sure to read all agreements very carefully. In some cases 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 rather than agree to terms that you do not understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to think about disputing credit report errors. Lots of 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 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 decision to use credit repair you have to be proactive in monitoring your credit score and making sure all negative things are removed. If you find yourself consistently having high rates of interest or fees, you can begin to challenge those negative items with the credit agencies. The credit agencies will try to check the negative information by contacting the original creditor. In the event they cannot prove the product is inaccurate they will remove it. The challenge process takes a while and you might not have the patience to monitor your score constantly but as soon as you begin to see the numbers move in the right direction you’ll be glad you took the opportunity to work with credit repair. Your credit score will begin to improve and you will have the financial power you will need to get the loan or credit you deserve!