Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a individual’s credit report. An accurate credit report is vitally important for getting any sort 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 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 clients to dispute inaccurate information in their credit reports. This prevents the negative information from going onto your credit file which further lowers your credit score. Most credit repair companies are able to provide services in your local area. Additionally, there are companies that offer nationwide positive identity repair service and services.
The credit repair process begins by the client making an inquiry to the credit reporting bureaus. They check to find out if there are any errors in the information they are receiving from the 3 major credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus receive the details from the credit bureau, the customers are sent a note 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 isn’t an easy task to accomplish, it requires patience and determination to handle disputes one by one. You will have to write or call your credit reporting agency at least one time to report the disputed information. There are many 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 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 a continuous procedure that needs 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 agencies. During this period you’ll 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. In some cases it can be harder to fix certain issues if the credit reporting agencies require additional information, such as verification of employment. Always be certain that the agreement is clear on what you are agreeing to rather than agree to terms which you do not understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to consider disputing credit report errors. Many individuals 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 make sure 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 in 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 must be proactive in monitoring your credit score and making sure all negative things are removed. If you find yourself consistently having high rates of interest or fees, you can begin to challenge those negative things with the credit bureaus. The credit agencies will try to check the negative information by calling the original creditor. In the event they can’t 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 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!