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 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 is advisable to have your credit report professionally adjusted 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 on their credit reports. This prevents the adverse information from moving onto your credit file which further lowers your credit rating. Most credit repair companies are able to provide services in your local area. There are also companies that offer nationwide positive identity repair support and services.
The credit repair process starts by the customer making an inquiry to the credit reporting agencies. They check to find out if there are any errors in the information they are receiving 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 bureaus get the details from the credit bureau, the clients are sent a note informing them of the errors. The credit report companies then look into the claims and make sure the errors are fixed.
Credit repair isn’t an easy task to accomplish, it requires patience and determination to manage disputes one . You’ll have to write or telephone your credit reporting agency 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, 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 an ongoing 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 will 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 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 problems if the credit reporting agencies require additional information, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to and never agree to terms that you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you might also want to think about disputing credit report errors. Lots of people don’t realize they even have problems with their credit until they apply for a mortgage or a car loan. For many people this process will not 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 discover 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 use 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 interest rates or fees, you can start to challenge those negative things with the credit bureaus. The credit bureaus will attempt to check the negative information by contacting the original creditor. In the event they can’t prove the item is inaccurate they’ll remove it. The challenge process takes some time and you might not have the patience to monitor your score constantly but as soon as you start to see the numbers move in the right direction you’ll be happy you took the time 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!