Credit repair is the process of correcting inaccurate, outdated or incorrect information on a individual’s credit report.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 sort 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 highly recommended to have your credit report professionally adjusted by means of 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 on their credit reports. This prevents the adverse information from going onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in your local area. There are also companies that provide nationwide positive identity repair service and services.
The credit repair process starts by the client making an inquiry to the credit reporting agencies. They check to find out if there are any errors in the information they are getting from the 3 big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus get the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then investigate the claims and make sure the errors have been fixed.
Credit repair is not an easy task to accomplish, it requires patience and determination to manage disputes one by one. You’ll need 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 objective is to get the negative information removed from your credit report to increase your credit score.
Credit Repair is not a one-time task. It is a continuous procedure that needs to be addressed. When you hire a credit repair service you should be ready for one or two weeks of correspondence between you and the credit reporting bureaus. 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. In some cases it can be harder 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 that you do not understand.
Besides 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 won’t be complicated. They simply want to be 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 inaccurate or false information in your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the choice to use credit repair you have to be proactive in monitoring your credit score and making sure all negative items are removed. If you end up consistently having high rates of interest or fees, you can start to challenge those negative items with the credit agencies. The credit bureaus will try to check the negative information by calling the original creditor. In the event they cannot prove the product is inaccurate they’ll remove it. The challenge process requires a while and you might not have the patience to monitor your score constantly but once you begin to see the numbers move in the right direction you’ll be happy you took the opportunity 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!