Credit repair is the process of correcting inaccurate, outdated or erroneous information on a individual’s credit report. An accurate credit report is critically 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 possibly a lease or rental. It’s highly recommended 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 clients to dispute inaccurate information on their credit reports. This prevents the negative information from going onto your credit file that further lowers your credit score. Most credit repair companies have the ability to provide services in your local area. Additionally, there are companies that provide nationwide positive identity repair support and solutions.
The credit repair process starts by the customer 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 3 big credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies receive the details from the credit bureau, the clients are sent a notice informing them of the errors. The credit report companies then look into the claims and make sure the errors are fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to manage disputes one . You will have to write or call your credit reporting agency 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, ranging from errors to data that’s not even yours. Your primary objective 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’s an ongoing procedure that has to be addressed. When you hire a credit repair agency you should be ready for one or 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 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 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 which you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you might also want to think about disputing credit report errors. Lots of individuals 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 will not be complicated. They simply want to be sure 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 on your report you can dispute it with the credit reporting bureaus and have them remove it.
Once you have made the choice to use credit repair you have to be proactive in monitoring your credit rating and making sure all negative items are removed. If you end up consistently having high interest rates or fees, you can begin to challenge those negative things with the credit bureaus. The credit agencies 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 takes a while and you may not have the patience to observe your score constantly but as soon as you begin to see the numbers move in the right direction you will 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!