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 sort 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 customers to dispute inaccurate information on their credit reports. This prevents the negative information from going onto your credit file that further lowers your credit score. Most credit repair companies are able to provide services in your community area. There are also companies that offer nationwide positive identity repair support and services.
The credit repair process begins by the client making an inquiry to the credit reporting bureaus. They check to see if there are any mistakes 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 note informing them of the mistakes. The credit report companies then look into the claims and make certain that the errors are fixed.
Credit repair is not a simple task to accomplish, it takes patience and determination to manage disputes one by one. You’ll have to write or call your credit reporting bureau at least one time to report the disputed information. There are many reasons why the credit reporting bureau may not remove negative information from your credit file, ranging from errors to data that is not even yours. Your primary objective is to get the negative information removed from your credit report to increase your credit score.
Credit Repair isn’t a one-time task. It’s 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’ll be informed of the progress each agency has made in resolving the negative information. 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 issues if the credit reporting agencies need additional information, 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 do not 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 lots of people this process will not be complicated. They simply want to make certain the information is accurate in order that they can avoid paying high interest rates or being denied credit due to incorrect information. If you find 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 have to be proactive in monitoring your credit score and ensuring all negative things are removed. If you find yourself consistently having high rates of interest or fees, you can start to challenge those negative things with the credit bureaus. The credit agencies will attempt to check the negative information by contacting 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 time to work with credit repair. Your credit score will begin to improve and you’ll have the financial power you will need to get the loan or credit you deserve!