Credit repair is the process of correcting inaccurate, outdated or erroneous information on a person’s credit report.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 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 applying 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 going onto your credit file that further lowers your credit score. Most credit repair companies have the ability to provide services in your local area. Additionally, there are companies that provide nationwide positive identity repair service and services.
The credit repair process starts by the customer 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 agencies receive 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 certain that the errors are fixed.
Credit repair isn’t a simple task to accomplish, it takes patience and determination to manage disputes one by one. You will have to write or telephone 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 file, which range from errors to data that is not even yours. Your primary objective 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’s a continuous procedure that has 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 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 problems if the credit reporting agencies need additional information, such as verification of employment. Always make sure that the agreement is clear on what you’re agreeing to rather than agree to terms which you don’t understand.
Besides 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 lots of people this process won’t be complicated. They simply want to make certain that the information is accurate so they can avoid paying high rates of interest or being denied credit because of incorrect information. If you discover any incorrect or false information in your report you can dispute it with the credit reporting bureaus and have them remove it.
Once you have made the choice to use credit repair you have to be proactive in monitoring your credit rating and making sure 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 can’t prove the product is inaccurate they’ll remove it. The challenge process takes a while and you may not have the patience to observe 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’ll have the financial power you will need to get the loan or credit you deserve!