Credit repair is the process of correcting inaccurate, outdated or erroneous information on a individual’s credit report.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 highly recommended 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 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 local area. Additionally, there are companies that provide nationwide positive identity repair service and services.
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 getting 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 agencies 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 sure the errors have been fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to handle disputes one . You’ll have 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 agency may not remove negative information from your credit report, ranging 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 is an ongoing procedure that has 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 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. Sometimes it can be harder to fix certain issues if the credit reporting agencies require additional information, such as verification of employment. Always make certain that the agreement is clear on what you are agreeing to and never agree to terms that 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 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 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 because of incorrect information. If you discover any inaccurate 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 have to be proactive in monitoring your credit rating and ensuring all negative things are removed. If you find yourself consistently having high interest rates or fees, you can start to challenge those negative things with the credit agencies. The credit agencies will attempt to verify the negative information by calling the original creditor. In the event they can’t prove the product is inaccurate they will remove it. The challenge process takes some time and you may not have the patience to observe your score constantly but once you begin 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 begin to improve and you will have the financial power you need to get the loan or credit you deserve!