Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report.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’s highly recommended 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 in their credit reports. This prevents the adverse information from moving onto your credit file which further lowers your credit rating. Most credit repair companies have the ability to provide services in the local area. Additionally, there are 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 bureaus. They check to find out if there are any mistakes in the information they are receiving 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 agencies get the details from the credit bureau, the clients are sent a notice 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 takes patience and determination to handle disputes one by one. You will have 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, 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 improve your credit score.
Credit Repair is not a one-time task. It is a continuous procedure that needs to be addressed. When you hire a credit repair service you should be prepared for one or two weeks of correspondence between you and the credit reporting agencies. 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. In some cases it can be harder to fix certain problems 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 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. Lots of people don’t realize they even have problems with their credit until they apply for a mortgage or a car loan. For lots of people this process will not be complicated. They simply want to make certain 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 bureaus 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 making sure all negative items are removed. If you find yourself consistently having high interest rates or fees, you can begin to challenge those negative things with the credit bureaus. The credit bureaus will try to verify the negative information by contacting the original creditor. In the event they cannot prove the item is inaccurate they will remove it. The challenge process requires 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 will be glad you took the opportunity 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!