Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report.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’s 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 customers to dispute inaccurate information on their credit reports. This prevents the adverse information from going onto your credit file that further lowers your credit score. Most credit repair companies have the ability to provide services in the 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 errors in the information they are getting from the 3 big credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies receive the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then look into the claims and make certain that the errors have been fixed.
Credit repair is not a simple task to accomplish, it takes patience and determination to handle disputes one by one. You’ll need to write or telephone 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 report, 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 increase 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 to 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 details. When the negative 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 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.
In addition to working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Lots of 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 certain the information is accurate so they can avoid paying high rates of interest 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 bureaus 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 begin to challenge those negative items with the credit bureaus. The credit bureaus will attempt 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 some time 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 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!