Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’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 is 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 negative information from going onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in the local area. There are also companies that provide nationwide positive identity repair support and solutions.
The credit repair process starts by the client 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 3 major 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 note informing them of the errors. The credit report companies then look into the claims and make certain that the errors are fixed.
Credit repair isn’t an easy task to accomplish, it takes patience and determination to handle disputes one by 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 bureau may not remove negative information from your credit report, which range from errors to data that’s not even yours. Your primary purpose is to get the negative information removed from your credit report to improve your credit score.
Credit Repair isn’t a one-time task. It is a continuous 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 agencies. During this period you’ll be informed of the progress each agency has made in resolving the negative details. 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 to read all agreements very carefully. In some cases it can be harder to fix certain problems if the credit reporting agencies require additional information, such as verification of employment. Always make sure that the agreement is clear on what you’re agreeing to rather than agree to terms which you do not 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 lots of people this process won’t be complicated. They simply want to make certain 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 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 utilize credit repair you must be proactive in monitoring your credit score and ensuring all negative things are removed. If you find yourself consistently having high rates of interest or fees, you can start to challenge those negative things with the credit bureaus. The credit bureaus will try to check the negative information by calling the original creditor. In the event they cannot prove the product is inaccurate they will remove it. The challenge process requires a while and you may not have the patience to monitor your score constantly but once you begin to see the numbers move in the right direction you’ll be glad you took the time to utilize 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!