Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. A true credit report is vitally 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 even a lease or rental. It’s advisable to have your credit report professionally corrected by means of a credit repair company before applying 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 negative information from moving onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in the community area. Additionally, there are companies that provide nationwide positive identity repair support and services.
The credit repair process starts by the customer 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 3 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 note informing them of the errors. The credit report companies then investigate 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 manage disputes one by one. You’ll 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 file, which range from errors to data that is not even yours. Your primary purpose is to get the negative information removed from your credit report to improve your credit score.
Credit Repair is not a one-time task. It’s an ongoing procedure that has to be addressed. When you hire a credit repair agency you should be ready for one or 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 details. 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 more difficult to fix certain problems if the credit reporting agencies need additional information, 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.
In addition to working with the credit repair company to remove inaccurate information, you may also want to consider 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 due to 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 decision to utilize credit repair you have to be proactive in monitoring your credit rating and making sure all negative things are removed. If you find yourself consistently having high interest rates or fees, you can start to challenge those negative things with the credit bureaus. The credit agencies will attempt to check 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 some time and you might not have the patience to observe your score constantly but as soon as you start 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!