Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a individual’s credit report. An accurate credit report is critically 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 possibly a lease or rental. It is 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 customers to dispute inaccurate information on their credit reports. This prevents the negative information from going onto your credit file which further lowers your credit rating. Most credit repair companies are able to provide services in your local area. There are also companies that offer nationwide positive identity repair support and solutions.
The credit repair process begins by the customer making an inquiry to the credit reporting bureaus. They check to find out if there are any errors in the information they are receiving from the three major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies get the details from the credit bureau, the customers are sent a note informing them of the mistakes. The credit report companies then investigate the claims and make certain that the errors are fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to handle disputes one by one. You will have to write or telephone your credit reporting bureau 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’s not even yours. Your primary purpose is to have 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 service you should be ready for one to 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 details. Once the negative 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. Sometimes it can be more difficult to fix certain issues if the credit reporting agencies need additional data, such as verification of employment. Always be sure that the agreement is clear on what you are agreeing to and never agree to terms that 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. Many people don’t realize they even have problems with their credit until they apply for a mortgage or a car loan. For lots of people this process will not be complicated. They simply want to be sure that the information is accurate so they can avoid paying high interest rates or being denied credit because of incorrect information. If you find any incorrect or false information on your report you can dispute it with the credit reporting bureaus and have them remove it.
Once you have made the decision 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 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 takes 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 glad you took the time to utilize credit repair. Your credit score will begin to improve and you will have the financial power you need to get the loan or credit you deserve!