Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a individual’s credit report. A true credit report is vitally important for getting any sort 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 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 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 have the ability to provide services in your community area. There are also 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 bureaus. They check to find out if there are any mistakes in the information they are receiving from the 3 major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies 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 have been fixed.
Credit repair is not an easy task to accomplish, it takes patience and determination to manage disputes one by one. You will need 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, ranging from errors to data that is not even yours. Your primary purpose is to get 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 service you should be prepared 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. 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 require 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.
Besides working with the credit repair company to remove inaccurate information, you may also want to think about 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 won’t be complicated. They simply want to make certain that the information is accurate in order that 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.
As soon as you have made the choice to utilize credit repair you have to be proactive in monitoring your credit score and making sure all negative things 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 bureaus will attempt 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 a while and you may not have the patience to monitor your score constantly but once you begin to see the numbers move in the right direction you will be happy you took the opportunity to work with credit repair. Your credit score will start to improve and you will have the financial power you will need to get the loan or credit you deserve!