Credit repair is the process of correcting inaccurate, outdated or erroneous information on a individual’s credit report. A true credit report is critically 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 which further lowers your credit score. Most credit repair companies are able to provide services in your local area. There are also companies that offer nationwide positive identity repair support 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 3 major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus receive 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 are fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to manage disputes one by one. You’ll need to write or call your credit reporting agency 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 is not even yours. Your primary objective is to get the negative information removed from your credit report to improve your credit score.
Credit Repair isn’t a one-time task. It is an ongoing procedure that needs to be addressed. When you hire a credit repair service you should be prepared 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 information. 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 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 do not understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to consider 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 be 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 bureaus 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 ensuring all negative items are removed. If you find yourself 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 verify the negative information by contacting the original creditor. In the event they can’t prove the item is inaccurate they will remove it. The challenge process requires 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 utilize 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!