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 like being turned down for a loan, credit card, job or possibly a lease or rental. It is advisable to have your credit report professionally adjusted by a credit repair company before applying 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 negative 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. There are also 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 bureaus. They check to find out if there are any errors in the information they are getting from the 3 major credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies get the details from the credit bureau, the clients are sent a notice informing them of the mistakes. The credit report companies then investigate the claims and make sure the errors have been fixed.
Credit repair is not 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 is not even yours. Your primary objective is to get the negative information removed from your credit report to increase 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 service you should be ready for one to two weeks of correspondence between you and the credit reporting agencies. 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. Sometimes it can be harder to fix certain problems if the credit reporting agencies require 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 might also want to think about 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 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 find any incorrect or false information in your report you can dispute it with the credit reporting bureaus 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 ensuring all negative items are removed. If you end up 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 check the negative information by contacting 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 monitor 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’ll have the financial power you will need to get the loan or credit you deserve!