Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. A true credit report is critically important for getting any sort 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 means of a credit repair company before applying for any loans, credit cards, employment or any other financial transaction that requires a great 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 which further lowers your credit rating. Most credit repair companies have the ability to provide services in the local area. Additionally, there are companies that provide nationwide positive identity repair support and solutions.
The credit repair process begins by the client making an inquiry to the credit reporting bureaus. They check to find out if there are any mistakes in the information they are getting from the three big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus receive the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then investigate the claims and make sure the errors have been fixed.
Credit repair isn’t a simple task to accomplish, it takes patience and determination to manage disputes one by one. You’ll have 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 bureau may not remove negative information from your credit file, which range from errors to data that is not even yours. Your primary purpose 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 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 details. Once the negative 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 to read all agreements very carefully. Sometimes it can be harder to fix certain issues if the credit reporting agencies need additional information, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to rather than agree to terms which you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to consider disputing credit report errors. Many individuals do not realize they even have problems with their credit until they apply for a mortgage or a car loan. For lots of people this process won’t be complicated. They simply want to make sure that the information is accurate in order that they can avoid paying high interest rates or being denied credit due to incorrect information. If you discover any inaccurate or false information on your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the choice to use credit repair you have to be proactive in monitoring your credit rating and ensuring all negative items are removed. If you find yourself consistently having high rates of interest or fees, you can begin to challenge those negative items with the credit bureaus. The credit agencies will attempt to check the negative information by contacting 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 monitor your score constantly but once you begin to see the numbers move in the right direction you will be happy you took the opportunity to work with credit repair. Your credit score will start to improve and you’ll have the financial power you need to get the loan or credit you deserve!