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 is highly recommended to have your credit report professionally corrected 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 on their credit reports. This prevents the adverse information from moving onto your credit file that further lowers your credit score. Most credit repair companies have the ability to provide services in the local area. Additionally, there are companies that provide nationwide positive identity repair service 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 getting from the 3 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 clients are sent a note informing them of the mistakes. The credit report companies then look into the claims and make sure the errors are fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to handle disputes one by one. You’ll have 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 bureau may not remove negative information from your credit file, ranging from errors to data that’s not even yours. Your primary objective is to have the negative information removed from your credit report to improve your credit score.
Credit Repair is not a one-time task. It is 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’ll be informed of the progress each agency has made in resolving the negative information. 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 to read all agreements very carefully. Sometimes it can be harder to fix certain problems if the credit reporting agencies require additional data, such as verification of employment. Always make certain that the agreement is clear on what you are 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 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 will not be complicated. They simply want to be certain the information is accurate so they can avoid paying high rates of interest or being denied credit due to 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 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 begin to challenge those negative things with the credit bureaus. The credit agencies will try to verify the negative information by calling the original creditor. In the event they cannot prove the product is inaccurate they will remove it. The challenge process takes some time and you may not have the patience to monitor your score constantly but once you begin to see the numbers move in the right direction you’ll be happy you took the opportunity to work with credit repair. Your credit score will begin to improve and you will have the financial power you will need to get the loan or credit you deserve!