Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a individual’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 is 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 great credit score.
A credit repair program helps clients to dispute inaccurate information in their credit reports. This prevents the negative information from moving onto your credit file which further lowers your credit rating. Most credit repair companies have the ability to provide services in the community area. Additionally, there are companies that provide nationwide positive identity repair service and services.
The credit repair process begins 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 receiving from the three major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies receive the details from the credit bureau, the clients are sent a notice informing them of the mistakes. The credit report companies then investigate the claims and make certain that the errors have been fixed.
Credit repair isn’t 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 a number of 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 increase 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 to two weeks of correspondence between you and the credit reporting agencies. 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 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 data, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to rather than agree to terms which you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Many individuals 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 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 discover any inaccurate 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 use credit repair you have to be proactive in monitoring your credit score and ensuring 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 agencies. The credit agencies will try to verify the negative information by calling the original creditor. In the event they cannot prove the item 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 begin to see the numbers move in the right direction you will be happy you took the time to utilize 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!