Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. An accurate credit report is critically 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 applying 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 on their credit reports. This prevents the adverse information from moving onto your credit file that further lowers your credit score. 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 client making an inquiry to the credit reporting agencies. They check to see if there are any mistakes 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 bureaus with the details. After the credit bureaus get the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then look into the claims and make certain that the errors have been fixed.
Credit repair is not an easy task to accomplish, it requires patience and determination to handle disputes one by one. You’ll have to write or call your credit reporting agency at least one time to report the disputed information. There are many 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 have the negative information removed from your credit report to increase your credit score.
Credit Repair isn’t a one-time task. It is a continuous procedure that has to be addressed. When you hire a credit repair service 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 information. When 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 harder to fix certain problems if the credit reporting agencies need additional data, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to and never agree to terms which you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to consider disputing credit report errors. Many individuals 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 be certain 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 find any inaccurate or false information on your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the choice to utilize credit repair you have to be proactive in monitoring your credit score and making sure all negative things are removed. If you end up consistently having high interest rates or fees, you can begin to challenge those negative items with the credit agencies. The credit agencies 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 observe your score constantly but once you start to see the numbers move in the right direction you will be happy 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!