Credit repair is the process of correcting inaccurate, obsolete 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 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 corrected 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 going onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in your community area. Additionally, there are companies that offer nationwide positive identity repair support and services.
The credit repair process starts by the client making an inquiry to the credit reporting bureaus. They check to see if there are any mistakes in the information they are receiving from the three major 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 certain that 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 will need to write or call your credit reporting agency 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’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 is an ongoing 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 will be informed of the progress each agency has made in resolving the negative details. 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. In some cases it can be more difficult to fix certain issues if the credit reporting agencies require additional information, such as verification of employment. Always be sure that the agreement is clear on what you are agreeing to and never agree to terms which you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to consider disputing credit report errors. Lots of individuals don’t 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 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 agencies and have them remove it.
Once you have made the choice to use credit repair you must be proactive in monitoring your credit score and ensuring all negative items are removed. If you find yourself consistently having high rates of interest or fees, you can start to challenge those negative items with the credit bureaus. 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 will remove it. The challenge process takes 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 time to utilize credit repair. Your credit score will start to improve and you’ll have the financial power you will need to get the loan or credit you deserve!