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 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 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 in their credit reports. This prevents the negative information from moving onto your credit file which further lowers your credit rating. Most credit repair companies have the ability to provide services in your local area. Additionally, there are companies that offer nationwide positive identity repair support and solutions.
The credit repair process starts by the client making an inquiry to the credit reporting bureaus. They check to find out if there are any mistakes in the information they are getting from the three major credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus get the details from the credit bureau, the clients 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 isn’t an easy task to accomplish, it requires patience and determination to manage disputes one . You will 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, 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 isn’t a one-time task. It is an ongoing procedure that has to be addressed. When you hire a credit repair service 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. Once 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 to read all agreements very carefully. In some cases it can be more difficult 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 rather than agree to terms that you don’t 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. 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 that the information is accurate so 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 agencies 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 end up consistently having high rates of interest or fees, you can begin 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 some time and you might not have the patience to monitor your score constantly but once you begin to see the numbers move in the right direction you’ll be glad you took the opportunity to utilize credit repair. Your credit score will begin to improve and you’ll have the financial power you need to get the loan or credit you deserve!