Credit repair is the process of correcting inaccurate, outdated or incorrect information on a individual’s credit report. An accurate 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 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 which further lowers your credit rating. Most credit repair companies are able to provide services in your local area. Additionally, there are 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 find out if there are any errors in the information they are receiving from the 3 big 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 clients 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 takes patience and determination to manage disputes one by one. You will 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 report, which range from errors to data that’s not even yours. Your primary purpose is to have the negative information removed from your credit report to improve your credit score.
Credit Repair isn’t 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 agencies. During this period you will be informed of the progress each agency has made in resolving the negative details. Once the negative 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 to read all agreements very carefully. In some cases it can be more difficult to fix certain issues if the credit reporting agencies need additional information, such as verification of employment. Always make certain that the agreement is clear on what you’re agreeing to and never agree to terms which you do not understand.
Besides working with the credit repair company to remove inaccurate information, you might 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 lots of 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 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.
As soon as you have made the decision to utilize credit repair you must be proactive in monitoring your credit rating and making sure all negative things are removed. If you end up consistently having high rates of interest or fees, you can begin to challenge those negative things with the credit agencies. The credit agencies 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 takes some time and you may not have the patience to monitor your score constantly but once you start to see the numbers move in the right direction you’ll be glad you took the opportunity 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!