Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a individual’s credit report. A true credit report is vitally 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 even a lease or rental. It’s 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 in their credit reports. This prevents the negative information from moving onto your credit file that further lowers your credit score. Most credit repair companies have the ability to provide services in the community area. There are also companies that provide nationwide positive identity repair service and solutions.
The credit repair process begins by the customer making an inquiry to the credit reporting bureaus. They check to find out if there are any errors in the information they are receiving from the three big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus get the details from the credit bureau, the clients are sent a notice informing them of the errors. The credit report companies then investigate the claims and make sure the errors are fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to handle disputes one by one. You will need to write or call 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 a continuous procedure that needs to be addressed. When you hire a credit repair agency you should be prepared for one or 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. 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 to read all agreements very carefully. In some cases it can be harder 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’re agreeing to and never agree to terms which you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to consider disputing credit report errors. Lots of 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 won’t be complicated. They simply want to make sure the information is accurate in order that they can avoid paying high rates of interest or being denied credit due to incorrect information. If you discover any incorrect or false information in your report you can dispute it with the credit reporting agencies and have them remove it.
As soon as you have made the decision to use credit repair you have to be proactive in monitoring your credit score and ensuring all negative items are removed. If you end up consistently having high rates of interest or fees, you can start to challenge those negative things with the credit bureaus. The credit bureaus will try 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 might not have the patience to observe your score constantly but once you start to see the numbers move in the right direction you’ll be glad you took the opportunity 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!