Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report. An accurate credit report is vitally important for getting any type of financial help. Inaccurate information can cause embarrassing situations like being turned down for a loan, credit card, job or even a lease or rental. It is advisable to have your credit report professionally adjusted by 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 moving onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in your community area. Additionally, there are companies that provide nationwide positive identity repair service and services.
The credit repair process begins by the client making an inquiry to the credit reporting agencies. They check to see if there are any errors in the information they are getting from the three major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus get the details from the credit bureau, the clients are sent a note informing them of the errors. The credit report companies then look into the claims and make certain that the errors have been fixed.
Credit repair isn’t an easy task to accomplish, it takes patience and determination to handle disputes one by one. You’ll need to write or call your credit reporting bureau at least one time to report the disputed information. There are many reasons why the credit reporting agency may not remove negative information from your credit file, ranging from errors to data that is not even yours. Your primary purpose is to get the negative information removed from your credit report to improve your credit score.
Credit Repair is not a one-time task. It’s an ongoing 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 will be informed of the progress each agency has made in resolving the negative information. When 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 you read all agreements very carefully. Sometimes it can be harder to fix certain issues if the credit reporting agencies need additional data, such as verification of employment. Always make certain that the agreement is clear on what you’re agreeing to and never agree to terms which you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to think about disputing credit report errors. Many individuals 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 will not be complicated. They simply want to make sure the information is accurate so they can avoid paying high rates of interest or being denied credit due to incorrect information. If you discover any incorrect or false information in your report you can dispute it with the credit reporting bureaus 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 ensuring 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 check the negative information by calling the original creditor. In the event they can’t prove the item is inaccurate they will remove it. The challenge process takes some time and you might not have the patience to monitor 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 work with credit repair. Your credit score will begin to improve and you’ll have the financial power you need to get the loan or credit you deserve!