Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. A true credit report is critically important for getting any sort 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 corrected by a credit repair company before you apply 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 adverse information from moving onto your credit file that further lowers your credit score. Most credit repair companies have the ability to provide services in the local area. Additionally, there are companies that provide nationwide positive identity repair support and services.
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 getting from the three major credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus get 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 are fixed.
Credit repair isn’t a simple task to accomplish, it takes patience and determination to manage disputes one . You’ll have to write or telephone 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 file, 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’s an ongoing 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 agencies. 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. In some cases it can be more difficult to fix certain problems if the credit reporting agencies need additional information, 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 don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to consider 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 make sure that the information is accurate so they can avoid paying high rates of interest or being denied credit because of incorrect information. If you find 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 decision to utilize credit repair you have to be proactive in monitoring your credit rating 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 items with the credit bureaus. The credit bureaus will attempt to verify the negative information by contacting the original creditor. In the event they can’t prove the product is inaccurate they will remove it. The challenge process takes 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 will 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!