Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. A true credit report is vitally 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 even a lease or rental. It is advisable to have your credit report professionally adjusted by 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 moving onto your credit file which further lowers your credit rating. Most credit repair companies are able to provide services in the local area. There are also companies that offer nationwide positive identity repair service and solutions.
The credit repair process begins 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 major credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus get the details from the credit bureau, the customers are sent a notice 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 a simple task to accomplish, it takes patience and determination to manage disputes one . You’ll 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, which range from errors to data that’s not even yours. Your primary purpose 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 has to be addressed. When you hire a credit repair service you should be ready for one to 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 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 to read all agreements very carefully. In some cases it can be more difficult to fix certain problems if the credit reporting agencies need additional data, such as verification of employment. Always make certain that the agreement is clear on what you are agreeing to rather than 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 think about disputing credit report errors. Many people 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 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 bureaus and have them remove it.
As soon as you have made the choice to use credit repair you must be proactive in monitoring your credit rating 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 things with the credit agencies. The credit bureaus will attempt 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 some time and you may not have the patience to monitor your score constantly but as soon as you start to see the numbers move in the right direction you’ll be glad you took the time to work with credit repair. Your credit score will start to improve and you will have the financial power you need to get the loan or credit you deserve!