Credit repair is the process of correcting inaccurate, outdated or erroneous information on a individual’s credit report.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 possibly 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 in their credit reports. This prevents the negative information from going onto your credit file which further lowers your credit rating. Most credit repair companies have the ability to provide services in the community area. Additionally, there are companies that provide nationwide positive identity repair support and solutions.
The credit repair process starts 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 getting from the three major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies 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 sure the errors are fixed.
Credit repair is not an easy task to accomplish, it takes patience and determination to manage disputes one by one. You’ll have to write or telephone your credit reporting agency 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 report, which range from errors to data that’s not even yours. Your primary purpose is to have the negative information removed from your credit report to increase your credit score.
Credit Repair is not a one-time task. It’s 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’ll 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 you read all agreements very carefully. Sometimes it can be more difficult to fix certain problems if the credit reporting agencies need additional information, such as verification of employment. Always make certain that the agreement is clear on what you are agreeing to rather than agree to terms which you do not understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to think about 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 lots of 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 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 decision to utilize credit repair you must be proactive in monitoring your credit score and making sure all negative things 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 bureaus. The credit bureaus will try to verify the negative information by calling the original creditor. In the event they cannot prove the item is inaccurate they will remove it. The challenge process requires a while and you may not have the patience to observe your score constantly but once you begin to see the numbers move in the right direction you will be happy 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!