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 advisable 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 on their credit reports. This prevents the negative information from moving onto your credit file which further lowers your credit score. Most credit repair companies are able to provide services in the community area. Additionally, there are companies that offer nationwide positive identity repair support and services.
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 big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies receive the details from the credit bureau, the customers are sent a notice informing them of the errors. The credit report companies then look into 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 handle disputes 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 bureau may not remove negative information from your credit report, which range from errors to data that is not even yours. Your primary purpose is to have the negative information removed from your credit report to improve your credit score.
Credit Repair is not a one-time task. It’s an ongoing procedure that has to be addressed. When you hire a credit repair agency you should be ready for one or 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 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 you read all agreements very carefully. In some cases it can be harder 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 rather than agree to terms which you do not 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 will not be complicated. They simply want to be certain that the information is accurate in order that they can avoid paying high rates of interest or being denied credit because of incorrect information. If you discover 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 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 rates of interest or fees, you can start to challenge those negative things with the credit bureaus. The credit bureaus will attempt to verify the negative information by calling the original creditor. In the event they can’t prove the product is inaccurate they’ll remove it. The challenge process takes some time and you might not have the patience to observe your score constantly but once you start 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 start to improve and you will have the financial power you need to get the loan or credit you deserve!