Credit repair is the process of correcting inaccurate, outdated or incorrect information on a individual’s credit report.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 like being turned down for a loan, credit card, job or possibly 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 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 score. Most credit repair companies have the ability to provide services in your community area. Additionally, there are companies that offer nationwide positive identity repair support and services.
The credit repair process starts by the customer making an inquiry to the credit reporting bureaus. They check to find out 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 agencies get the details from the credit bureau, the customers are sent a notice informing them of the errors. The credit report companies then investigate the claims and make sure the errors are fixed.
Credit repair isn’t a simple task to accomplish, it takes patience and determination to handle disputes one by one. You’ll have to write or call your credit reporting agency at least one time to report the disputed information. There are a number of reasons why the credit reporting bureau may not remove negative information from your credit file, ranging from errors to data that’s not even yours. Your primary purpose is to get the negative information removed from your credit report to increase your credit score.
Credit Repair isn’t a one-time task. It’s an ongoing procedure that needs 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 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. In some cases it can be more difficult to fix certain issues if the credit reporting agencies require additional information, such as verification of employment. Always make sure that the agreement is clear on what you’re agreeing to rather than agree to terms which you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Many individuals 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 won’t be complicated. They simply want to be sure that the information is accurate so they can avoid paying high rates of interest or being denied credit because of incorrect information. If you find any inaccurate or false information in your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the decision to use credit repair you have to be proactive in monitoring your credit rating and ensuring all negative things are removed. If you find yourself consistently having high interest rates or fees, you can begin to challenge those negative items with the credit bureaus. The credit agencies will attempt to check the negative information by calling 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’ll be glad you took the opportunity 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!