Credit repair is the process of correcting inaccurate, obsolete or incorrect 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 such as being turned down for a loan, credit card, job or even a lease or rental. It is highly recommended to have your credit report professionally adjusted 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 customers 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 are able to provide services in your community area. Additionally, there are companies that offer nationwide positive identity repair service and services.
The credit repair process begins by the customer making an inquiry to the credit reporting agencies. They check to see if there are any mistakes 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 bureaus with the details. After the credit agencies receive the details from the credit bureau, the clients are sent a notice informing them of the mistakes. The credit report companies then investigate 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 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 report, ranging from errors to data that’s not even yours. Your primary objective 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 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 bureaus. During this period you will be informed of the progress each agency has made in resolving the negative information. Once the adverse 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 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 and never agree to terms that you do not understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to consider disputing credit report errors. Many 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 sure that the information is accurate in order that they can avoid paying high interest rates or being denied credit because of incorrect information. If you discover 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 score and making sure all negative things are removed. If you find yourself consistently having high interest rates or fees, you can start to challenge those negative items with the credit agencies. The credit bureaus will attempt to verify the negative information by contacting 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 might not have the patience to monitor your score constantly but once you start to see the numbers move in the right direction you’ll be happy you took the opportunity to work with credit repair. Your credit score will start to improve and you will have the financial power you need to get the loan or credit you deserve!