Credit repair is the process of correcting inaccurate, outdated or erroneous information on a individual’s credit report.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 like being turned down for a loan, credit card, job or possibly 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 customers to dispute inaccurate information on their credit reports. This prevents the adverse information from moving onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in the local area. Additionally, there are companies that offer 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 see if there are any mistakes in the information they are getting from the 3 major credit reporting bureaus: 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 customers are sent a notice informing them of the errors. The credit report companies then investigate the claims and make sure the errors are fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to manage disputes one by 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 agency may not remove negative information from your credit report, which range from errors to data that’s not even yours. Your primary objective is to get 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 ready 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 information. Once the adverse information has been removed from your credit report that 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 issues if the credit reporting agencies need 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 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 people do not realize they even have problems with their credit until they apply for a mortgage or a car loan. For lots of people this process won’t be complicated. They simply want to make 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 in your report you can dispute it with the credit reporting agencies and have them remove it.
As soon as you have made the choice to use credit repair you have to be proactive in monitoring your credit score and making sure all negative things 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 bureaus. The credit bureaus will try to check the negative information by contacting the original creditor. In the event they can’t prove the item is inaccurate they will remove it. The challenge process requires some time and you may not have the patience to observe your score constantly but once you start 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 start to improve and you’ll have the financial power you need to get the loan or credit you deserve!