Credit repair is the process of correcting inaccurate, obsolete or incorrect 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 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 great credit score.
A credit repair program helps clients to dispute inaccurate information in their credit reports. This prevents the negative information from moving onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in your community area. There are also companies that offer 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 three major credit reporting agencies: 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 customers are sent a note informing them of the errors. The credit report companies then investigate the claims and make sure the errors have been fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to handle disputes one . You will 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 agency may not remove negative information from your credit report, which range from errors to data that’s not even yours. Your primary purpose 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 is an ongoing 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 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. In some cases it can be harder to fix certain problems if the credit reporting agencies need additional data, such as verification of employment. Always make certain that the agreement is clear on what you’re agreeing to and never agree to terms which you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to think about disputing credit report errors. Many people 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 will not be complicated. They simply want to make certain the information is accurate so they can avoid paying high interest rates or being denied credit because of incorrect information. If you find any incorrect or false information in your report you can dispute it with the credit reporting agencies and have them remove it.
As soon as you have made the decision to use credit repair you must be proactive in monitoring your credit score and making sure all negative things are removed. If you find yourself consistently having high rates of interest or fees, you can start to challenge those negative items with the credit bureaus. The credit agencies will try to verify the negative information by contacting 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 as soon as you begin to see the numbers move in the right direction you will be glad you took the time to work with credit repair. Your credit score will start to improve and you’ll have the financial power you need to get the loan or credit you deserve!