Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a individual’s credit report. An accurate 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 is highly recommended to have your credit report professionally adjusted 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 in 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. There are also companies that offer nationwide positive identity repair service and solutions.
The credit repair process starts by the customer making an inquiry to the credit reporting bureaus. They check to find out if there are any errors 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 bureaus with the details. After the credit agencies receive the details from the credit bureau, the customers are sent a note 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 have to write or telephone your credit reporting bureau at least one time to report the disputed information. There are a number of 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 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 prepared for one or 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 information. When the adverse 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 more difficult to fix certain issues if the credit reporting agencies require additional information, such as verification of employment. Always be certain that the agreement is clear on what you are agreeing to and never agree to terms that 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 lots of people this process will not be complicated. They simply want to be sure the information is accurate so they can avoid paying high interest rates or being denied credit because of incorrect information. If you find any incorrect 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 choice to utilize credit repair you have to be proactive in monitoring your credit score and making sure 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 agencies. The credit agencies will attempt to check the negative information by contacting the original creditor. In the event they cannot prove the product is inaccurate they’ll remove it. The challenge process takes a while and you might not have the patience to observe your score constantly but as soon as you begin to see the numbers move in the right direction you will be glad you took the opportunity to utilize 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!