Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a individual’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 local area. There are also companies that provide nationwide positive identity repair service and solutions.
The credit repair process starts by the client making an inquiry to the credit reporting agencies. They check to see if there are any errors 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 bureaus receive the details from the credit bureau, the clients 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 isn’t a simple task to accomplish, it takes patience and determination to manage disputes one . You’ll have to write or call your credit reporting bureau 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, which range from errors to data that’s 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 is a continuous procedure that has 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 agencies. During this period you will be informed of the progress each agency has made in resolving the negative information. When the adverse information has been removed from your credit report 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 issues if the credit reporting agencies require additional data, such as verification of employment. Always be sure that the agreement is clear on what you are agreeing to rather than 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. Lots of individuals 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 will not be complicated. They simply want to make sure that the information is accurate in order that they can avoid paying high rates of interest or being denied credit because of incorrect information. If you discover any incorrect 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 use credit repair you have to be proactive in monitoring your credit score and making sure all negative items are removed. If you end up 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 check the negative information by calling the original creditor. In the event they cannot prove the item is inaccurate they’ll remove it. The challenge process requires a while and you might 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 happy you took the time to utilize credit repair. Your credit score will start to improve and you’ll have the financial power you will need to get the loan or credit you deserve!