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 sort of financial help. Inaccurate information can cause embarrassing situations such as 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 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 moving onto your credit file which further lowers your credit rating. Most credit repair companies are able to provide services in your local 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 receiving from the three major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies receive the details from the credit bureau, the customers 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 is not an easy task to accomplish, it requires patience and determination to manage disputes one by one. You’ll 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 file, ranging 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’s a continuous 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 bureaus. During this period you will be informed of the progress each agency has made in resolving the negative details. 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. In some cases it can be harder to fix certain problems if the credit reporting agencies need additional data, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to rather than agree to terms which you do not understand.
Besides 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 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 inaccurate or false information on your report you can dispute it with the credit reporting agencies and have them remove it.
As soon as you have made the choice to utilize 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 things with the credit agencies. The credit bureaus will try to verify the negative information by calling the original creditor. In the event they can’t prove the item is inaccurate they’ll 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 begin to see the numbers move in the right direction you will be happy you took the opportunity to work with credit repair. Your credit score will begin to improve and you will have the financial power you need to get the loan or credit you deserve!