Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. A true 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 advisable 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 are able to provide services in your community area. There are also companies that provide nationwide positive identity repair service and solutions.
The credit repair process starts by the client 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 three big credit reporting agencies: 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 customers are sent a note informing them of the errors. The credit report companies then investigate the claims and make sure the errors are fixed.
Credit repair is not a simple task to accomplish, it takes patience and determination to handle 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 many reasons why the credit reporting agency may not remove negative information from your credit file, which range from errors to data that’s not even yours. Your primary objective is to get the negative information removed from your credit report to improve your credit score.
Credit Repair is not 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 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. Sometimes it can be harder to fix certain problems if the credit reporting agencies require additional data, such as verification of employment. Always make certain that the agreement is clear on what you are agreeing to and never agree to terms which you do not understand.
Besides working with the credit repair company to remove inaccurate information, you might also want to think about 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 make certain that 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 find any inaccurate 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 utilize 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 start to challenge those negative things with the credit agencies. The credit bureaus will attempt 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 requires a while and you may not have the patience to monitor your score constantly but once you start to see the numbers move in the right direction you will be glad you took the opportunity to work with credit repair. Your credit score will start to improve and you’ll have the financial power you need to get the loan or credit you deserve!