Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. A true 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’s advisable 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 in their credit reports. This prevents the adverse information from going onto your credit file which further lowers your credit score. 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 solutions.
The credit repair process begins by the client 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 agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies receive the details from the credit bureau, the clients are sent a note informing them of the errors. The credit report companies then investigate the claims and make certain that the errors are fixed.
Credit repair is not an easy task to accomplish, it requires patience and determination to manage disputes one by one. You will have to write or telephone your credit reporting agency 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 file, ranging from errors to data that is not even yours. Your primary purpose is to have 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 service you should be prepared 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 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. Sometimes it can be harder to fix certain issues if the credit reporting agencies need additional data, such as verification of employment. Always make 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 think about 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 lots of people this process will not be complicated. They simply want to make certain the information is accurate in order that they can avoid paying high interest rates or being denied credit because of incorrect information. If you find any inaccurate or false information in your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the choice to utilize credit repair you have to be proactive in monitoring your credit score and ensuring all negative things are removed. If you end up consistently having high interest rates or fees, you can start to challenge those negative things with the credit agencies. The credit bureaus will try to verify the negative information by contacting 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 monitor your score constantly but once you start 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 start to improve and you will have the financial power you will need to get the loan or credit you deserve!