Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report. A true 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 highly recommended to have your credit report professionally adjusted 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 customers to dispute inaccurate information on their credit reports. This prevents the adverse information from moving onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in the local area. There are also 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 receiving 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 get the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then look into the claims and make sure the errors are fixed.
Credit repair isn’t an easy task to accomplish, it requires patience and determination to handle disputes one by one. You’ll 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 objective 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 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 will be informed of the progress each agency has made in resolving the negative details. When the negative 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. Sometimes it can be more difficult to fix certain issues if the credit reporting agencies require additional data, such as verification of employment. Always make sure that the agreement is clear on what you are agreeing to rather than agree to terms which you don’t 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 many people this process will not be complicated. They simply want to make sure that the information is accurate in order that they can avoid paying high rates of interest or being denied credit due to incorrect information. If you find any inaccurate or false information in 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 use credit repair you have to be proactive in monitoring your credit rating and ensuring all negative items are removed. If you find yourself consistently having high rates of interest or fees, you can begin to challenge those negative items with the credit bureaus. The credit agencies will try 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 monitor your score constantly but as soon as you start to see the numbers move in the right direction you will be glad you took the time to work with credit repair. Your credit score will begin to improve and you will have the financial power you will need to get the loan or credit you deserve!