Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report. An accurate 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 possibly a lease or rental. It’s highly recommended to have your credit report professionally corrected by a credit repair company before applying 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 are able to provide services in the local area. Additionally, there are companies that provide nationwide positive identity repair service and services.
The credit repair process starts by the customer 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 three major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus get the details from the credit bureau, the customers are sent a note informing them of the mistakes. The credit report companies then investigate the claims and make certain that the errors are fixed.
Credit repair isn’t an easy task to accomplish, it requires patience and determination to handle disputes 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 file, ranging from errors to data that’s not even yours. Your primary objective is to have 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 agency 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 information. When 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 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 information, such as verification of employment. Always make sure that the agreement is clear on what you are agreeing to rather than agree to terms that you don’t understand.
In addition to 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 many people this process won’t be complicated. They simply want to be sure 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.
As soon as you have made the decision to use credit repair you have to be proactive in monitoring your credit score 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 bureaus will attempt to verify 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 requires a while and you might not have the patience to observe your score constantly but once you start to see the numbers move in the right direction you will be glad you took the opportunity 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!