Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report.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 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 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 clients to dispute inaccurate information on their credit reports. This prevents the negative information from moving onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in your local area. Additionally, there are companies that provide nationwide positive identity repair support and solutions.
The credit repair process begins by the customer making an inquiry to the credit reporting bureaus. They check to see if there are any errors 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 agencies with the details. After the credit agencies receive the details from the credit bureau, the customers are sent a note informing them of the mistakes. The credit report companies then look into the claims and make sure the errors are fixed.
Credit repair is not an easy task to accomplish, it requires patience and determination to handle disputes one by one. You will need 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 bureau may not remove negative information from your credit report, ranging from errors to data that is 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 ready 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. Once 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. Sometimes 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 are agreeing to and never agree to terms which you do not 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 lots of people this process won’t be complicated. They simply want to make certain the information is accurate so they can avoid paying high rates of interest or being denied credit because of incorrect information. If you discover any incorrect or false information in 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 use credit repair you have to be proactive in monitoring your credit score and making sure all negative items are removed. If you find yourself 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 calling the original creditor. In the event they cannot prove the product is inaccurate they will remove it. The challenge process requires a while and you may not have the patience to monitor your score constantly but as soon as you begin 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 will need to get the loan or credit you deserve!