Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. A true credit report is vitally 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 adjusted by a credit repair company before applying 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 going onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in the community area. There are also companies that provide 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 big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus receive the details from the credit bureau, the clients are sent a notice informing them of the errors. The credit report companies then look into the claims and make certain that the errors have been fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to handle disputes one by one. You will 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 agency 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 improve your credit score.
Credit Repair is not a one-time task. It is an ongoing procedure that has 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 bureaus. During this period you will be informed of the progress each agency has made in resolving the negative information. Once 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 data, such as verification of employment. Always make certain that the agreement is clear on what you’re agreeing to and never agree to terms which you do not understand.
Besides working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Lots of 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 be sure 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 incorrect or false information in your report you can dispute it with the credit reporting bureaus and have them remove it.
Once you have made the choice to use 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 interest rates or fees, you can begin to challenge those negative items with the credit agencies. The credit bureaus will try 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 requires 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 will 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!