Credit repair is the process of correcting inaccurate, outdated or erroneous information on a person’s credit report. An accurate 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 is highly recommended 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 great credit score.
A credit repair program helps customers to dispute inaccurate information in their credit reports. This prevents the negative information from moving onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in the community area. There are also 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 agencies. They check to see if there are any mistakes 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 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 mistakes. The credit report companies then look into the claims and make certain that the errors are fixed.
Credit repair isn’t an easy task to accomplish, it requires patience and determination to handle disputes one by one. You’ll have to write or telephone your credit reporting agency 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, ranging from errors to data that is not even yours. Your primary objective is to get the negative information removed from your credit report to improve your credit score.
Credit Repair isn’t a one-time task. It is an ongoing procedure that needs 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 details. When the negative 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. 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 be sure 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. Many 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 won’t be complicated. They simply want to make certain that the information is accurate in order that they can avoid paying high interest rates or being denied credit due to incorrect information. If you find any incorrect or false information on your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the choice to utilize credit repair you have to be proactive in monitoring your credit rating and ensuring all negative things are removed. If you end up consistently having high rates of interest or fees, you can start to challenge those negative things with the credit bureaus. The credit bureaus will attempt to verify 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 takes a while 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 time to work with credit repair. Your credit score will start to improve and you will have the financial power you will need to get the loan or credit you deserve!