Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. An accurate credit report is vitally 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 possibly a lease or rental. It is highly recommended to have your credit report professionally corrected by 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 negative information from moving onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in your community area. Additionally, there are companies that provide nationwide positive identity repair support and services.
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 receiving 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 bureaus get the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then look into the claims and make sure the errors have been fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to manage disputes one by one. You will have to write or call your credit reporting bureau at least one time to report the disputed information. There are a number of reasons why the credit reporting bureau may not remove negative information from your credit file, which range from errors to data that’s not even yours. Your primary purpose is to get the negative information removed from your credit report to increase your credit score.
Credit Repair isn’t a one-time task. It is a continuous procedure that needs to be addressed. When you hire a credit repair agency you should be ready 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 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 problems if the credit reporting agencies require additional information, such as verification of employment. Always be certain that the agreement is clear on what you’re agreeing to rather than agree to terms that you do not understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to consider disputing credit report errors. Lots of people don’t realize they even have problems with their credit until they apply for a mortgage or a car loan. For lots of people this process will not be complicated. They simply want to be sure that the information is accurate so they can avoid paying high rates of interest 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 bureaus and have them remove it.
As soon as you have made the choice to use credit repair you must be proactive in monitoring your credit rating and making sure all negative items are removed. If you find yourself consistently having high rates of interest or fees, you can begin to challenge those negative things with the credit agencies. The credit agencies will attempt to verify the negative information by calling the original creditor. In the event they cannot prove the item is inaccurate they will remove it. The challenge process takes a while and you might not have the patience to monitor 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 work with 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!