Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a individual’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 is highly recommended to have your credit report professionally adjusted 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 on their credit reports. This prevents the adverse information from going onto your credit file that further lowers your credit score. Most credit repair companies are able to provide services in your local area. Additionally, there are companies that provide nationwide positive identity repair support and services.
The credit repair process starts by the client making an inquiry to the credit reporting agencies. They check to find out if there are any mistakes in the information they are receiving 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 agencies receive the details from the credit bureau, the clients are sent a notice informing them of the mistakes. The credit report companies then look into the claims and make sure the errors have been fixed.
Credit repair isn’t an easy task to accomplish, it requires patience and determination to manage disputes one by one. You will have 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 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 improve your credit score.
Credit Repair isn’t a one-time task. It’s an ongoing procedure that has 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 will 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 more difficult to fix certain issues if the credit reporting agencies need additional data, such as verification of employment. Always be certain that the agreement is clear on what you are agreeing to rather than agree to terms which you do not understand.
Besides 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 will not be complicated. They simply want to be sure the information is accurate so they can avoid paying high rates of interest or being denied credit because of 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.
As soon as you have made the choice to use credit repair you must be proactive in monitoring your credit score and making sure all negative items are removed. If you end up consistently having high rates of interest or fees, you can start to challenge those negative items with the credit agencies. The credit agencies will try to check 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 some time and you might 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 happy 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!