Credit repair is the process of correcting inaccurate, outdated or erroneous information on a person’s credit report. A true 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 adjusted 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 adverse information from going onto your credit file which further lowers your credit score. 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 begins by the client making an inquiry to the credit reporting bureaus. They check to see if there are any errors in the information they are receiving from the 3 big credit reporting agencies: 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 investigate the claims and make sure the errors have been fixed.
Credit repair is not an easy task to accomplish, it requires patience and determination to manage disputes one . You will need to write or call your credit reporting bureau at least one time to report the disputed information. There are many reasons why the credit reporting agency may not remove negative information from your credit file, which range 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’s a continuous procedure that needs to be addressed. When you hire a credit repair agency you should be ready 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 information. When the negative 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 you read all agreements very carefully. In some cases it can be harder to fix certain issues if the credit reporting agencies require additional information, such as verification of employment. Always make sure that the agreement is clear on what you are agreeing to and never agree to terms which 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 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 interest rates 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 agencies and have them remove it.
Once you have made the decision 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 rates of interest or fees, you can start to challenge those negative items with the credit bureaus. The credit bureaus will attempt to check the negative information by calling the original creditor. In the event they can’t prove the item is inaccurate they will remove it. The challenge process requires some time and you might not have the patience to observe your score constantly but once you begin to see the numbers move in the right direction you will be glad you took the time to work with credit repair. Your credit score will begin to improve and you’ll have the financial power you will need to get the loan or credit you deserve!