Credit repair is the process of correcting inaccurate, outdated or erroneous information on a person’s credit report.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 advisable 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 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 rating. Most credit repair companies have the ability to provide services in your local area. There are also companies that provide nationwide positive identity repair service and solutions.
The credit repair process begins by the client making an inquiry to the credit reporting agencies. They check to find out if there are any errors 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 errors. The credit report companies then investigate the claims and make sure the errors are fixed.
Credit repair isn’t a simple task to accomplish, it takes patience and determination to manage disputes one . You’ll need 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 agency may not remove negative information from your credit file, which range 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 agency you should be prepared 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. 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. In some cases it can be more difficult to fix certain problems if the credit reporting agencies require additional information, such as verification of employment. Always be certain that the agreement is clear on what you’re agreeing to and never agree to terms which you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you might also want to consider 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 won’t be complicated. They simply want to be certain that the information is accurate so they can avoid paying high interest rates or being denied credit due to incorrect information. If you discover 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 must be proactive in monitoring your credit rating 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 bureaus. 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 takes a while and you may not have the patience to monitor your score constantly but once you begin 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’ll have the financial power you will need to get the loan or credit you deserve!