Credit repair is the process of correcting inaccurate, outdated or erroneous information on a individual’s credit report. An accurate credit report is critically 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’s highly recommended 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 in their credit reports. This prevents the adverse information from moving onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in your community 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 see if there are any mistakes 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 bureaus with the details. After the credit bureaus 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 are fixed.
Credit repair is not an easy task to accomplish, it takes patience and determination to handle disputes one . You’ll 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 agency may not remove negative information from your credit file, ranging from errors to data that’s not even yours. Your primary objective is to have the negative information removed from your credit report to increase your credit score.
Credit Repair is not a one-time task. It is 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 agencies. During this period you’ll 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. In some cases it can be harder to fix certain issues if the credit reporting agencies need additional data, 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 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 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 be 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 bureaus and have them remove it.
Once you have made the decision to use credit repair you have to be proactive in monitoring your credit rating 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 bureaus. The credit bureaus will try to check the negative information by calling the original creditor. In the event they cannot prove the item is inaccurate they’ll remove it. The challenge process requires 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 will be glad you took the time to work with credit repair. Your credit score will start to improve and you will have the financial power you need to get the loan or credit you deserve!