Credit repair is the process of correcting inaccurate, obsolete 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 even a lease or rental. It is advisable to have your credit report professionally adjusted by a credit repair company before you apply 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 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 your community area. There are also companies that provide nationwide positive identity repair support 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 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 notice informing them of the errors. The credit report companies then look into the claims and make certain that the errors have been fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to handle disputes one by one. You’ll need 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 bureau may not remove negative information from your credit report, 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 increase your credit score.
Credit Repair isn’t a one-time task. It’s a continuous procedure that has 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 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. Sometimes it can be harder 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 and never agree to terms which you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Many individuals don’t 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 in order that 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 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 score and making sure all negative items 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 bureaus will attempt to verify the negative information by calling the original creditor. In the event they cannot prove the product is inaccurate they’ll remove it. The challenge process takes a while and you might not have the patience to observe your score constantly but once you begin to see the numbers move in the right direction you’ll 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!