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 even a lease or rental. It is highly recommended to have your credit report professionally adjusted by a credit repair company before applying for any loans, credit cards, employment or any other financial transaction that requires a great credit score.
A credit repair program helps customers to dispute inaccurate information in their credit reports. This prevents the adverse information from moving onto your credit file that further lowers your credit score. Most credit repair companies have the ability to provide services in the local area. There are also companies that provide nationwide positive identity repair service and services.
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 errors in the information they are getting from the 3 major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus 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 certain that the errors have been fixed.
Credit repair is not a simple task to accomplish, it takes patience and determination to handle disputes one . You will have to write or telephone your credit reporting bureau 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, ranging from errors to data that is not even yours. Your primary purpose 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 an ongoing procedure that needs to be addressed. When you hire a credit repair service 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. When the negative 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 you 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 make sure that the agreement is clear on what you’re agreeing to and never agree to terms which you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you might 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 many people this process won’t be complicated. They simply want to be sure that the information is accurate so 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 things are removed. If you find yourself consistently having high interest rates or fees, you can begin to challenge those negative things with the credit agencies. The credit agencies will attempt to check the negative information by contacting the original creditor. In the event they cannot prove the product is inaccurate they’ll remove it. The challenge process takes some time 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 start to improve and you’ll have the financial power you will need to get the loan or credit you deserve!