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 like being turned down for a loan, credit card, job or even 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 customers to dispute inaccurate information on their credit reports. This prevents the negative information from moving onto your credit file which further lowers your credit score. Most credit repair companies are able to provide services in the community area. Additionally, there are companies that provide nationwide positive identity repair service and services.
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 errors 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 bureaus with the details. After the credit bureaus receive the details from the credit bureau, the clients are sent a note informing them of the errors. The credit report companies then look into the claims and make sure the errors are fixed.
Credit repair is not an easy task to accomplish, it takes patience and determination to handle disputes one . You’ll have to write or call your credit reporting bureau 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 file, 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 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 agencies. During this period you will 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 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 make sure that the agreement is clear on what you are agreeing to rather than agree to terms that you do not 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 people 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 won’t be complicated. They simply want to be sure that the information is accurate so they can avoid paying high interest rates or being denied credit because of incorrect information. If you find any inaccurate 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 must be proactive in monitoring your credit score and ensuring 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 bureaus. The credit agencies will try to verify the negative information by contacting the original creditor. In the event they cannot prove the item is inaccurate they will remove it. The challenge process requires a while 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’ll be happy you took the time to work with credit repair. Your credit score will begin to improve and you’ll have the financial power you need to get the loan or credit you deserve!