Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report. An accurate credit report is vitally 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 great credit score.
A credit repair program helps clients to dispute inaccurate information on their credit reports. This prevents the negative information from going onto your credit file that further lowers your credit score. Most credit repair companies are able to provide services in your local area. Additionally, there are companies that offer nationwide positive identity repair support 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 3 big credit reporting bureaus: 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 note informing them of the mistakes. The credit report companies then investigate the claims and make certain that the errors are fixed.
Credit repair isn’t an easy task to accomplish, it requires patience and determination to handle disputes one by one. You’ll need to write or call your credit reporting agency 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 report, ranging from errors to data that is not even yours. Your primary purpose is to have the negative information removed from your credit report to increase your credit score.
Credit Repair is not a one-time task. It is a continuous procedure that has to be addressed. When you hire a credit repair service you should be ready for one to two weeks of correspondence between you and the credit reporting bureaus. During this period you’ll be informed of the progress each agency has made in resolving the negative details. Once 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. Sometimes it can be harder to fix certain problems if the credit reporting agencies require additional information, such as verification of employment. Always be certain that the agreement is clear on what you’re agreeing to and never agree to terms that you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you might also want to think about disputing credit report errors. Many 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 won’t be complicated. They simply want to be 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 find any inaccurate or false information in your report you can dispute it with the credit reporting bureaus and have them remove it.
Once you have made the decision to utilize credit repair you have to be proactive in monitoring your credit score and ensuring all negative items are removed. If you end up consistently having high interest rates or fees, you can begin to challenge those negative items with the credit bureaus. The credit bureaus will attempt to check 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 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’ll have the financial power you need to get the loan or credit you deserve!