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 type 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 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 good 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 which further lowers your credit score. Most credit repair companies are able to provide services in your community area. Additionally, there are companies that provide nationwide positive identity repair service and solutions.
The credit repair process begins by the customer making an inquiry to the credit reporting agencies. They check to see if there are any errors in the information they are receiving from the 3 major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies 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 look into the claims and make certain that the errors are fixed.
Credit repair is not an easy task to accomplish, it takes 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 a number of 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 isn’t a one-time task. It’s an ongoing procedure that needs to be addressed. When you hire a credit repair service you should be prepared for one to two weeks of correspondence between you and the credit reporting agencies. During this period you will 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 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 problems if the credit reporting agencies require additional data, such as verification of employment. Always make sure that the agreement is clear on what you are agreeing to and never agree to terms which you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you might 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 make sure 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 incorrect or false information on your report you can dispute it with the credit reporting bureaus and have them remove it.
As soon as you have made the decision to utilize credit repair you have to be proactive in monitoring your credit rating and ensuring all negative things are removed. If you end up consistently having high interest rates or fees, you can begin to challenge those negative things with the credit agencies. The credit agencies will attempt to verify the negative information by contacting the original creditor. In the event they cannot prove the item is inaccurate they will remove it. The challenge process takes some time and you may not have the patience to observe your score constantly but once you start 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 begin to improve and you will have the financial power you will need to get the loan or credit you deserve!