Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report. A true credit report is critically important for getting any type of financial help. Inaccurate information can cause embarrassing situations such as being turned down for a loan, credit card, job or even a lease or rental. It is advisable to have your credit report professionally adjusted by means of 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 on their credit reports. This prevents the adverse information from moving onto your credit file which further lowers your credit score. Most credit repair companies are able to provide services in the local area. There are also 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 3 major credit reporting agencies: 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 clients are sent a notice informing them of the mistakes. The credit report companies then look into 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 manage disputes 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, 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 isn’t a one-time task. It’s an ongoing 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’ll 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 to read all agreements very carefully. In some cases it can be harder to fix certain problems if the credit reporting agencies need additional data, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to and never agree to terms that you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may 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 make 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 inaccurate 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 must be proactive in monitoring your credit score and ensuring all negative items are removed. If you end up consistently having high rates of interest or fees, you can begin 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 cannot prove the product is inaccurate they will remove it. The challenge process takes some time 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 time to utilize 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!