Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report.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 type of financial help. Inaccurate information can cause embarrassing situations such as being turned down for a loan, credit card, job or possibly a lease or rental. It is highly recommended to have your credit report professionally corrected by 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 in 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 the local area. There are also companies that offer nationwide positive identity repair support and solutions.
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 mistakes 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 get the details from the credit bureau, the clients 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 isn’t a simple task to accomplish, it takes patience and determination to handle disputes one . You’ll need to write or call 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 report, which range from errors to data that is not even yours. Your primary purpose is to have the negative information removed from your credit report to improve your credit score.
Credit Repair isn’t a one-time task. It is 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 agencies. During this period you will be informed of the progress each agency has made in resolving the negative details. Once the adverse 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 you read all agreements very carefully. In some cases it can be more difficult 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 are agreeing to and never agree to terms that you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to consider disputing credit report errors. Many individuals 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 be certain that the information is accurate in order that they can avoid paying high interest rates or being denied credit due to incorrect information. If you find any inaccurate 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 end up consistently having high rates of interest or fees, you can begin to challenge those negative things with the credit agencies. The credit bureaus will try to check the negative information by calling the original creditor. In the event they can’t prove the item is inaccurate they will remove it. The challenge process takes some time and you may not have the patience to monitor your score constantly but once you start to see the numbers move in the right direction you will 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 need to get the loan or credit you deserve!