Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. An accurate credit report is critically important for getting any type of financial help. Inaccurate information can cause embarrassing situations such as being turned down for a loan, credit card, job or possibly a lease or rental. It is advisable to have your credit report professionally adjusted by a credit repair company before applying for any loans, credit cards, employment or any other financial transaction that requires a great credit score.
A credit repair program helps customers to dispute inaccurate information in their credit reports. This prevents the adverse information from going onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in the local area. Additionally, there are companies that offer nationwide positive identity repair support and services.
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 getting 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 receive the details from the credit bureau, the customers are sent a notice informing them of the mistakes. The credit report companies then investigate 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’ll need 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 agency 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 increase your credit score.
Credit Repair isn’t a one-time task. It’s a continuous procedure that has to be addressed. When you hire a credit repair service 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. 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. In some cases it can be more difficult to fix certain issues 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 don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to consider 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 lots of people this process won’t be complicated. They simply want to be 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 incorrect or false information in your report you can dispute it with the credit reporting bureaus 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 rating and ensuring all negative items are removed. If you end up consistently having high rates of interest 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 contacting the original creditor. In the event they can’t prove the product is inaccurate they will remove it. The challenge process requires 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’ll be glad 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!