Credit repair is the process of correcting inaccurate, outdated or erroneous information on a individual’s credit report.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 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 means of 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 clients to dispute inaccurate information in their credit reports. This prevents the negative information from going onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in your community area. Additionally, there are companies that provide nationwide positive identity repair support and solutions.
The credit repair process begins 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 three major credit reporting agencies: 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 sure the errors have been fixed.
Credit repair isn’t a simple task to accomplish, it takes patience and determination to handle disputes one by one. You’ll have 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 bureau may not remove negative information from your credit report, which range from errors to data that is not even yours. Your primary objective is to have the negative information removed from your credit report to increase your credit score.
Credit Repair isn’t a one-time task. It’s a continuous procedure that needs 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 will 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 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 do not understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to think about disputing credit report errors. Lots of individuals 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 will not be complicated. They simply want to make sure 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 agencies and have them remove it.
Once you have made the choice to use credit repair you have to be proactive in monitoring your credit rating and making sure all negative things are removed. If you end up consistently having high interest rates or fees, you can begin to challenge those negative items with the credit bureaus. The credit agencies 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 may not have the patience to observe your score constantly but once you start to see the numbers move in the right direction you’ll be glad you took the time to work with 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!