Credit repair is the process of correcting inaccurate, outdated or incorrect information on a individual’s credit report. A true credit report is critically 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 even a lease or rental. It’s advisable 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 good credit score.
A credit repair program helps clients to dispute inaccurate information on their credit reports. This prevents the adverse information from going onto your credit file which further lowers your credit rating. Most credit repair companies have the ability to provide services in the local 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 find out if there are any mistakes in the information they are getting from the three big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus 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 certain that the errors have been fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to manage disputes one by one. You will need to write or call your credit reporting agency 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 report, ranging from errors to data that’s 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 prepared for one or two weeks of correspondence between you and the credit reporting agencies. During this period you will be informed of the progress each agency has made in resolving the negative information. 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 make sure that the agreement is clear on what you are agreeing to rather than agree to terms which you do not understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to think about 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 won’t be complicated. They simply want to be certain the information is accurate in order that they can avoid paying high rates of interest or being denied credit due to incorrect information. If you discover any inaccurate 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 choice to utilize credit repair you have to be proactive in monitoring your credit rating and ensuring all negative items 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 agencies will attempt to check the negative information by contacting the original creditor. In the event they can’t prove the item is inaccurate they will remove it. The challenge process takes a while and you may not have the patience to observe your score constantly but as soon as you start to see the numbers move in the right direction you’ll be happy you took the time to utilize 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!