Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’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 possibly a lease or rental. It’s 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 great credit score.
A credit repair program helps clients to dispute inaccurate information on their credit reports. This prevents the negative information from going onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in your community area. There are also companies that provide nationwide positive identity repair service and services.
The credit repair process starts by the client 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 big 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 note informing them of the mistakes. The credit report companies then investigate the claims and make sure the errors have been fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to handle disputes one . You will have to write or telephone your credit reporting bureau 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 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 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 ready for one to two weeks of correspondence between you and the credit reporting bureaus. During this period you’ll be informed of the progress each agency has made in resolving the negative details. Once the negative information has been removed from your credit report that 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 more difficult to fix certain issues if the credit reporting agencies require additional information, such as verification of employment. Always make sure that the agreement is clear on what you are agreeing to rather than agree to terms which you do not understand.
In addition to 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 many people this process will not be complicated. They simply want to make sure that the information is accurate in order that they can avoid paying high interest rates or being denied credit due to incorrect information. If you discover any incorrect or false information on 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 agencies will attempt to check the negative information by contacting the original creditor. In the event they cannot prove the product is inaccurate they will remove it. The challenge process takes some time 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 happy you took the time to work with credit repair. Your credit score will start to improve and you will have the financial power you need to get the loan or credit you deserve!