Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. A true credit report is vitally 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’s 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 great credit score.
A credit repair program helps clients to dispute inaccurate information on 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 the community area. Additionally, there are companies that offer nationwide positive identity repair service and solutions.
The credit repair process begins 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 3 major credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus get the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then look into the claims and make sure the errors have been fixed.
Credit repair isn’t an easy task to accomplish, it takes patience and determination to handle disputes one by one. You will have to write or telephone your credit reporting agency 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 report, 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 isn’t a one-time task. It’s a continuous procedure that has to be addressed. When you hire a credit repair service 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. 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 you 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 be certain that the agreement is clear on what you’re agreeing to rather than agree to terms which you do not understand.
In addition to working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Many 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 won’t be complicated. They simply want to be certain the information is accurate so they can avoid paying high rates of interest or being denied credit due to incorrect information. If you find any incorrect or false information in your report you can dispute it with the credit reporting agencies and have them remove it.
As soon as you have made the decision to use credit repair you must be proactive in monitoring your credit score and ensuring all negative items are removed. If you end up consistently having high interest rates or fees, you can start to challenge those negative items with the credit agencies. The credit agencies will attempt to verify 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 requires a while and you might not have the patience to observe your score constantly but as soon as you begin to see the numbers move in the right direction you’ll be happy 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!