Credit repair is the process of correcting inaccurate, outdated or incorrect information on a individual’s credit report.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 even a lease or rental. It is 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 in their credit reports. This prevents the adverse information from moving onto your credit file that further lowers your credit score. Most credit repair companies have the ability to provide services in your community area. Additionally, there are companies that offer nationwide positive identity repair service and services.
The credit repair process starts by the customer making an inquiry to the credit reporting agencies. They check to see 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 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 sure the errors have been fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to manage disputes one . You’ll have 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 bureau 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 a continuous procedure that needs to be addressed. When you hire a credit repair agency you should be prepared for one or two weeks of correspondence between you and the credit reporting agencies. 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 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 require additional data, such as verification of employment. Always be certain that the agreement is clear on what you are agreeing to rather than agree to terms that you do not understand.
Besides working with the credit repair company to remove inaccurate information, you might also want to consider 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 many people this process will not be complicated. They simply want to be certain that the information is accurate so they can avoid paying high interest rates or being denied credit because of incorrect information. If you discover 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 must be proactive in monitoring your credit rating and making sure all negative things are removed. If you end up consistently having high interest rates or fees, you can begin to challenge those negative things with the credit bureaus. The credit agencies will try to verify the negative information by contacting the original creditor. In the event they can’t prove the product is inaccurate they will remove it. The challenge process requires 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’ll be glad you took the time to utilize credit repair. Your credit score will start to improve and you’ll have the financial power you will need to get the loan or credit you deserve!