Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a individual’s credit report. A true credit report is vitally important for getting any type 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 advisable to have your credit report professionally corrected by means of a credit repair company before applying 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 which further lowers your credit score. Most credit repair companies have the ability to provide services in your local area. Additionally, there are companies that provide nationwide positive identity repair service and solutions.
The credit repair process starts by the client making an inquiry to the credit reporting agencies. They check to find out if there are any mistakes in the information they are receiving from the three big 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 customers are sent a notice informing them of the errors. The credit report companies then look into 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 manage disputes one by one. You will have to write or telephone 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, ranging 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 is not a one-time task. It is a continuous procedure that has 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 agencies. During this period you’ll be informed of the progress each agency has made in resolving the negative details. 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 to read all agreements very carefully. In some cases it can be harder to fix certain problems if the credit reporting agencies need additional information, such as verification of employment. Always make sure that the agreement is clear on what you’re agreeing to and never agree to terms which you do not 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 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 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 incorrect or false information on your report you can dispute it with the credit reporting agencies 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 find yourself consistently having high rates of interest or fees, you can start to challenge those negative items with the credit agencies. The credit agencies will try to verify the negative information by contacting the original creditor. In the event they can’t prove the product is inaccurate they’ll remove it. The challenge process requires a while and you may not have the patience to monitor your score constantly but once you start to see the numbers move in the right direction you’ll be glad you took the time 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!