Credit repair is the process of correcting inaccurate, obsolete or incorrect 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 such as being turned down for a loan, credit card, job or even a lease or rental. It’s advisable to have your credit report professionally adjusted by 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 in their credit reports. This prevents the adverse information from going onto your credit file which further lowers your credit rating. Most credit repair companies have the ability to provide services in the local area. Additionally, there are companies that offer nationwide positive identity repair support and services.
The credit repair process starts by the customer making an inquiry to the credit reporting agencies. They check to see if there are any errors in the information they are receiving from the three major credit reporting bureaus: 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 look into the claims and make sure the errors are fixed.
Credit repair isn’t an easy task to accomplish, it requires patience and determination to manage disputes one by one. You will need 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 is not even yours. Your primary objective 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 a continuous 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 will be informed of the progress each agency has made in resolving the negative details. Once the adverse 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 harder to fix certain issues 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 rather than agree to terms that 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 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 because of incorrect information. If you find any inaccurate or false information on your report you can dispute it with the credit reporting agencies and have them remove it.
As soon as you have made the choice to use credit repair you have to be proactive in monitoring your credit score and making sure 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 agencies. The credit agencies 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 takes some time and you might not have the patience to observe your score constantly but once you begin to see the numbers move in the right direction you’ll be happy you took the opportunity to utilize credit repair. Your credit score will begin to improve and you will have the financial power you need to get the loan or credit you deserve!