Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. A true credit report is critically 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 means of 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 clients to dispute inaccurate information on 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. Additionally, there are companies that provide nationwide positive identity repair service and services.
The credit repair process begins by the client making an inquiry to the credit reporting bureaus. They check to see if there are any mistakes in the information they are getting from the 3 major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies receive the details from the credit bureau, the customers are sent a notice informing them of the mistakes. The credit report companies then investigate the claims and make sure the errors have been fixed.
Credit repair is not an easy task to accomplish, it requires patience and determination to manage disputes one . You’ll have to write or telephone your credit reporting bureau 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 report, ranging from errors to data that is not even yours. Your primary purpose is to get the negative information removed from your credit report to increase your credit score.
Credit Repair is not a one-time task. It’s an ongoing procedure that needs 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’ll 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 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 make sure that the agreement is clear on what you are agreeing to rather than agree to terms that you do not 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 people 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 certain the information is accurate so they can avoid paying high interest rates or being denied credit due to incorrect information. If you discover any incorrect 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 must 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 things with the credit bureaus. The credit bureaus will attempt to check 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 requires a while and you may not have the patience to observe your score constantly but once you start to see the numbers move in the right direction you’ll 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!