Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a individual’s credit report. An accurate credit report is vitally 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’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 great 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 which further lowers your credit rating. Most credit repair companies have the ability to provide services in the local area. Additionally, there are companies that provide nationwide positive identity repair service and services.
The credit repair process starts by the client making an inquiry to the credit reporting agencies. They check to see if there are any mistakes in the information they are getting from the 3 big credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies get the details from the credit bureau, the clients are sent a notice 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 a simple task to accomplish, it requires patience and determination to manage disputes one by one. You’ll 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 bureau may not remove negative information from your credit report, which range 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 is a continuous 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’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 you read all agreements very carefully. In some cases it can be harder to fix certain issues if the credit reporting agencies require additional data, such as verification of employment. Always make certain that the agreement is clear on what you are agreeing to rather than agree to terms that you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may 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 lots of people this process won’t be complicated. They simply want to be sure the information is accurate in order that they can avoid paying high interest rates or being denied credit due to incorrect information. If you discover any inaccurate or false information on your report you can dispute it with the credit reporting bureaus and have them remove it.
As soon as you have made the decision to utilize credit repair you have to be proactive in monitoring your credit score and making sure all negative items are removed. If you end up consistently having high interest rates or fees, you can begin to challenge those negative items with the credit bureaus. The credit bureaus will attempt to check 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 a while and you may not have the patience to observe your score constantly but once you begin to see the numbers move in the right direction you will be happy you took the time to work with 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!