Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. A true 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 is advisable to have your credit report professionally corrected by a credit repair company before applying 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 moving 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 provide nationwide positive identity repair support and solutions.
The credit repair process starts by the customer 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 three major 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 customers are sent a note informing them of the mistakes. 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 requires patience and determination to manage disputes one by one. You’ll 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 increase your credit score.
Credit Repair isn’t 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. Once 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 to read all agreements very carefully. Sometimes it can be more difficult to fix certain issues if the credit reporting agencies require 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.
In addition to working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Lots of individuals do not realize they even have problems with their credit until they apply for a mortgage or a car loan. For lots of people this process won’t be complicated. They simply want to be certain the information is accurate so they can avoid paying high interest rates or being denied credit because of incorrect information. If you discover any incorrect or false information in your report you can dispute it with the credit reporting bureaus and have them remove it.
As soon as you have made the choice to utilize credit repair you must be proactive in monitoring your credit score and making sure all negative things are removed. If you end up consistently having high rates of interest or fees, you can start 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 cannot prove the item is inaccurate they’ll remove it. The challenge process requires some time and you may not have the patience to observe your score constantly but once you begin to see the numbers move in the right direction you’ll be glad you took the time to utilize credit repair. Your credit score will start to improve and you’ll have the financial power you need to get the loan or credit you deserve!