Credit repair is the process of correcting inaccurate, outdated or erroneous information on a person’s credit report. An accurate 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 possibly a lease or rental. It is 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 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 score. Most credit repair companies are able to provide services in the local area. There are also companies that offer nationwide positive identity repair support and services.
The credit repair process starts by the client making an inquiry to the credit reporting bureaus. They check to find out if there are any mistakes in the information they are getting from the 3 big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies receive the details from the credit bureau, the clients are sent a notice informing them of the mistakes. The credit report companies then look into the claims and make certain that the errors are fixed.
Credit repair isn’t a simple task to accomplish, it requires 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 file, 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 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 agencies. During this period you’ll be informed of the progress each agency has made in resolving the negative information. Once the adverse 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 more difficult to fix certain problems if the credit reporting agencies need additional data, 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 don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to think about disputing credit report errors. Lots of people do not 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 certain that the information is accurate so they can avoid paying high interest rates or being denied credit due to incorrect information. If you find any inaccurate or false information on your report you can dispute it with the credit reporting bureaus 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 ensuring all negative items are removed. If you end up consistently having high interest rates or fees, you can begin to challenge those negative things with the credit agencies. The credit bureaus 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 a while and you may 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 will be happy you took the opportunity to utilize 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!