Credit repair is the process of correcting inaccurate, obsolete or erroneous 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 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 corrected by means of 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 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 have the ability to provide services in your community area. Additionally, there are companies that provide nationwide positive identity repair service and services.
The credit repair process starts by the client 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 agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies get the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then look into the claims and make sure the errors have been fixed.
Credit repair isn’t a simple task to accomplish, it takes 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 report, which range from errors to data that is not even yours. Your primary objective 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 an ongoing procedure that has to be addressed. When you hire a credit repair agency you should be prepared for one to two weeks of correspondence between you and the credit reporting agencies. During this period you’ll 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 need additional data, such as verification of employment. Always make sure 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 lots of people this process won’t be complicated. They simply want to make certain that the information is accurate in order that they can avoid paying high rates of interest or being denied credit due to 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 must be proactive in monitoring your credit rating and making sure all negative items are removed. If you end up consistently having high interest rates or fees, you can start to challenge those negative things with the credit agencies. The credit agencies will try to verify the negative information by contacting the original creditor. In the event they cannot prove the item is inaccurate they’ll remove it. The challenge process takes a while and you might 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 glad you took the opportunity to work with credit repair. Your credit score will start to improve and you’ll have the financial power you will need to get the loan or credit you deserve!