Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. A true credit report is critically important for getting any type of financial help. Inaccurate information can cause embarrassing situations such as 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 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 which further lowers your credit rating. Most credit repair companies are able to provide services in your local area. Additionally, there are companies that offer 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 find out if there are any mistakes in the information they are getting from the three big credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus receive the details from the credit bureau, the clients are sent a note informing them of the errors. The credit report companies then look into the claims and make certain that the errors are fixed.
Credit repair isn’t an easy task to accomplish, it takes patience and determination to handle disputes one . You will need to write or call 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, ranging from errors to data that’s not even yours. Your primary purpose is to have the negative information removed from your credit report to improve your credit score.
Credit Repair isn’t a one-time task. It is an ongoing 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 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. Sometimes it can be more difficult to fix certain issues if the credit reporting agencies need additional information, such as verification of employment. Always be sure that the agreement is clear on what you are agreeing to rather than agree to terms that you don’t 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 won’t be complicated. They simply want to be certain the information is accurate so they can avoid paying high rates of interest or being denied credit due to incorrect information. If you find any incorrect 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 decision to utilize credit repair you have to be proactive in monitoring your credit rating and making sure all negative things are removed. If you end up consistently having high rates of interest or fees, you can begin to challenge those negative things with the credit agencies. The credit bureaus will try to verify the negative information by contacting the original creditor. In the event they cannot 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 once you begin to see the numbers move in the right direction you’ll be happy you took the opportunity to utilize 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!