Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report.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 highly recommended to have your credit report professionally corrected by means of 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 customers to dispute inaccurate information on their credit reports. This prevents the adverse information from going onto your credit file that further lowers your credit rating. Most credit repair companies are able to provide services in the community area. There are also companies that offer nationwide positive identity repair support and services.
The credit repair process starts by the customer making an inquiry to the credit reporting bureaus. They check to see if there are any errors in the information they are receiving from the 3 big credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies get the details from the credit bureau, the clients are sent a note informing them of the errors. The credit report companies then investigate the claims and make sure the errors are fixed.
Credit repair isn’t an easy task to accomplish, it takes patience and determination to handle 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 bureau may not remove negative information from your credit report, which range from errors to data that’s not even yours. Your primary objective is to get the negative information removed from your credit report to increase your credit score.
Credit Repair is not 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 will 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 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 problems if the credit reporting agencies require additional data, 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 don’t 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 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 be certain the information is accurate in order that they can avoid paying high interest rates or being denied credit because of incorrect information. If you discover any incorrect or false information on your report you can dispute it with the credit reporting bureaus and have them remove it.
As soon as you have made the choice to utilize credit repair you must 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 start to challenge those negative items with the credit bureaus. The credit bureaus will attempt to check the negative information by contacting the original creditor. In the event they can’t prove the product is inaccurate they’ll remove it. The challenge process takes a while and you may 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’ll be happy you took the opportunity to work with 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!