Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’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’s advisable 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 clients to dispute inaccurate information in 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 your community area. There are also companies that offer nationwide positive identity repair service and solutions.
The credit repair process begins by the customer making an inquiry to the credit reporting agencies. They check to see if there are any errors in the information they are receiving 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 agencies receive the details from the credit bureau, the customers are sent a note informing them of the errors. The credit report companies then look into the claims and make sure the errors are fixed.
Credit repair is not an easy task to accomplish, it takes patience and determination to manage 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, 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 increase your credit score.
Credit Repair is not a one-time task. It’s a continuous procedure that needs to be addressed. When you hire a credit repair service you should be prepared for one to 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 adverse 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 you read all agreements very carefully. In some cases it can be more difficult to fix certain issues if the credit reporting agencies need additional data, 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 might also want to think about 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 many people this process will not be complicated. They simply want to be certain the information is accurate so they can avoid paying high interest rates or being denied credit due to incorrect information. If you find 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 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 items with the credit agencies. The credit agencies will attempt to verify the negative information by contacting the original creditor. In the event they cannot prove the item is inaccurate they’ll remove it. The challenge process takes a while and you might not have the patience to monitor your score constantly but as soon as you begin 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 start to improve and you’ll have the financial power you will need to get the loan or credit you deserve!