Credit repair is the process of correcting inaccurate, obsolete or erroneous 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 is advisable to have your credit report professionally corrected 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 customers 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 offer nationwide positive identity repair support and solutions.
The credit repair process starts 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 bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies get the details from the credit bureau, the customers are sent a notice informing them of the errors. The credit report companies then look into 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 by one. You will 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 file, which range from errors to data that is not even yours. Your primary objective is to have the negative information removed from your credit report to improve your credit score.
Credit Repair is not a one-time task. It’s a continuous procedure that needs to be addressed. When you hire a credit repair agency you should be prepared for one to 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 details. Once the adverse information has been removed from your credit report that 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 issues if the credit reporting agencies need additional data, such as verification of employment. Always make sure that the agreement is clear on what you’re agreeing to rather than 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. Lots of 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 make 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 bureaus and have them remove it.
Once you have made the decision to utilize credit repair you have to be proactive in monitoring your credit score and ensuring all negative things are removed. If you find yourself consistently having high interest rates or fees, you can begin to challenge those negative things with the credit agencies. The credit agencies will try to check the negative information by contacting the original creditor. In the event they can’t prove the product is inaccurate they will remove it. The challenge process requires a while and you might not have the patience to observe your score constantly but as soon as you begin to see the numbers move in the right direction you will be glad you took the opportunity to utilize credit repair. Your credit score will begin to improve and you will have the financial power you will need to get the loan or credit you deserve!