Credit repair is the process of correcting inaccurate, obsolete or incorrect 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 possibly a lease or rental. It’s advisable to have your credit report professionally corrected 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 that further lowers your credit rating. Most credit repair companies have the ability to provide services in the community area. There are also companies that offer nationwide positive identity repair service and services.
The credit repair process begins by the client making an inquiry to the credit reporting bureaus. They check to see if there are any errors in the information they are getting from the 3 major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies receive 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 are fixed.
Credit repair isn’t a simple task to accomplish, it requires patience and determination to manage 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 report, ranging from errors to data that’s not even yours. Your primary objective is to have the negative information removed from your credit report to improve your credit score.
Credit Repair is not a one-time task. It is a continuous procedure that needs to be addressed. When you hire a credit repair service you should be prepared for one or two weeks of correspondence between you and the credit reporting bureaus. During this period you will be informed of the progress each agency has made in resolving the negative information. Once 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 to read all agreements very carefully. In some cases it can be harder to fix certain problems if the credit reporting agencies require additional data, such as verification of employment. Always be sure that the agreement is clear on what you are 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 consider disputing credit report errors. Many people do not realize they even have problems with their credit until they apply for a mortgage or a car loan. For lots of people this process will not be complicated. They simply want to make certain that the information is accurate in order that they can avoid paying high interest rates or being denied credit because of 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 must be proactive in monitoring your credit rating and making sure all negative things are removed. If you find yourself consistently having high rates of interest or fees, you can start to challenge those negative items 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 product is inaccurate they will remove it. The challenge process takes a while and you may not have the patience to observe your score constantly but once you begin to see the numbers move in the right direction you will be happy you took the time 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!