Credit repair is the process of correcting inaccurate, outdated or erroneous information on a individual’s credit report.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’s highly recommended to have your credit report professionally adjusted by means of 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 on their credit reports. This prevents the adverse information from going onto your credit file that further lowers your credit rating. Most credit repair companies have the ability to provide services in the community area. There are also companies that offer nationwide positive identity repair service and services.
The credit repair process begins by the customer making an inquiry to the credit reporting agencies. They check to see if there are any errors in the information they are getting from the three major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies receive the details from the credit bureau, the clients are sent a notice informing them of the errors. The credit report companies then investigate 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 need to write or call your credit reporting bureau at least one time to report the disputed information. There are a number of reasons why the credit reporting agency may not remove negative information from your credit report, which range from errors to data that is not even yours. Your primary objective 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 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 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 that 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 harder to fix certain problems if the credit reporting agencies need additional data, such as verification of employment. Always be certain that the agreement is clear on what you are 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 might also want to consider 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 many people this process will not be complicated. They simply want to make sure the information is accurate in order that they can avoid paying high rates of interest or being denied credit because of incorrect information. If you discover any incorrect or false information in 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 use credit repair you have to be proactive in monitoring your credit score and ensuring all negative items are removed. If you find yourself consistently having high rates of interest or fees, you can start to challenge those negative things with the credit agencies. The credit agencies will attempt to check the negative information by contacting the original creditor. In the event they can’t prove the product is inaccurate they will remove it. The challenge process requires some time and you may not have the patience to observe your score constantly but as soon as 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 begin to improve and you will have the financial power you will need to get the loan or credit you deserve!