Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. An accurate 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 possibly a lease or rental. It’s 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 in their credit reports. This prevents the adverse information from going onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in the local 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 find out if there are any mistakes in the information they are getting from the 3 big credit reporting bureaus: 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 notice 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 manage 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 file, which range from errors to data that’s not even yours. Your primary objective 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’s 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 bureaus. 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. 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 certain that the agreement is clear on what you are agreeing to rather than agree to terms that you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to think about disputing credit report errors. Many 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 will not be complicated. They simply want to be certain 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 in 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 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 start to challenge those negative things with the credit bureaus. 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 will remove it. The challenge process requires some time and you might not have the patience to observe your score constantly but once you begin to see the numbers move in the right direction you’ll be glad you took the time to utilize 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!