Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a individual’s credit report. An accurate credit report is vitally 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 even a lease or rental. It is highly recommended to have your credit report professionally adjusted 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 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 rating. Most credit repair companies have the ability to provide services in your community area. Additionally, there are companies that provide nationwide positive identity repair service and solutions.
The credit repair process starts by the customer making an inquiry to the credit reporting bureaus. They check to see if there are any mistakes in the information they are getting from the 3 big 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 customers are sent a notice informing them of the errors. The credit report companies then look into the claims and make certain that the errors have been fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to handle 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 report, which range from errors to data that’s not even yours. Your primary purpose is to have the negative information removed from your credit report to increase 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 agency you should be ready 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 details. When the adverse 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 issues if the credit reporting agencies need 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. Many 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 will not be complicated. They simply want to be certain that the information is accurate so they can avoid paying high interest rates or being denied credit due to incorrect information. If you discover any inaccurate or false information in your report you can dispute it with the credit reporting bureaus and have them remove it.
Once you have made the decision to use credit repair you must be proactive in monitoring your credit score and ensuring all negative things are removed. If you find yourself consistently having high interest rates or fees, you can start to challenge those negative things with the credit bureaus. The credit bureaus will attempt to verify the negative information by calling the original creditor. In the event they can’t prove the item is inaccurate they’ll remove it. The challenge process requires a while and you may 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 will have the financial power you will need to get the loan or credit you deserve!