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 such as being turned down for a loan, credit card, job or even a lease or rental. It’s 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 moving onto your credit file which further lowers your credit score. Most credit repair companies are able 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 bureaus. They check to see if there are any errors in the information they are getting from the 3 major 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 investigate the claims and make certain that the errors have been fixed.
Credit repair is not an easy task to accomplish, it takes patience and determination to manage disputes one . You’ll need to write or telephone your credit reporting agency at least one time to report the disputed information. There are a number of 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 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’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 bureaus. During this period you’ll be informed of the progress each agency has made in resolving the negative information. When 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. In some cases it can be harder to fix certain problems if the credit reporting agencies require additional information, such as verification of employment. Always make certain that the agreement is clear on what you’re agreeing to and never agree to terms which you do not understand.
In addition to 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 many people this process will not 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 because of 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 utilize credit repair you have to be proactive in monitoring your credit score and ensuring all negative items are removed. If you end up consistently having high interest rates or fees, you can start to challenge those negative items with the credit bureaus. The credit bureaus will attempt 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 as soon as you start to see the numbers move in the right direction you’ll 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!