Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a individual’s credit report. A true credit report is critically important for getting any sort 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 corrected by means of 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 on their credit reports. This prevents the adverse information from moving onto your credit file that further lowers your credit rating. Most credit repair companies have the ability to provide services in your community area. There are also companies that offer nationwide positive identity repair service and solutions.
The credit repair process starts 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 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 customers are sent a notice informing them of the errors. The credit report companies then look into the claims and make certain that the errors are fixed.
Credit repair is not an easy task to accomplish, it requires patience and determination to manage 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 agency 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 improve your credit score.
Credit Repair is not a one-time task. It’s an ongoing 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 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 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 more difficult to fix certain issues 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 may also want to think about disputing credit report errors. Many 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 make sure that the information is accurate so they can avoid paying high interest rates or being denied credit due to incorrect information. If you discover any incorrect or false information on your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the decision to utilize credit repair you must be proactive in monitoring your credit score and making sure all negative items are removed. If you end up consistently having high interest rates or fees, you can start to challenge those negative items with the credit agencies. The credit bureaus will attempt to verify 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 might not have the patience to monitor your score constantly but once you start to see the numbers move in the right direction you will be glad you took the opportunity 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!