Credit repair is the process of correcting inaccurate, outdated or incorrect information on a individual’s credit report. A true credit report is critically important for getting any sort 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 adjusted 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 negative information from going onto your credit file which further lowers your credit rating. Most credit repair companies have the ability to provide services in your local area. There are also companies that provide nationwide positive identity repair support and services.
The credit repair process begins by the client making an inquiry to the credit reporting agencies. 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 agencies with the details. After the credit agencies get 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 have been fixed.
Credit repair is not an easy task to accomplish, it takes patience and determination to handle disputes one by one. You will need to write or telephone 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 objective is to have the negative information removed from your credit report to increase your credit score.
Credit Repair is not a one-time task. It’s a continuous 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 will be informed of the progress each agency has made in resolving the negative details. When the negative 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. 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’re agreeing to and never agree to terms which you do not 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 don’t 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 the information is accurate so they can avoid paying high interest rates or being denied credit because of 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 decision to utilize credit repair you have to be proactive in monitoring your credit rating and making sure all negative items 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 agencies. The credit bureaus will attempt to verify 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 some time and you may 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 opportunity 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!