Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a individual’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 even a lease or rental. It is advisable to have your credit report professionally corrected by a credit repair company before you apply 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 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. Additionally, there are 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 mistakes in the information they are getting from the three major credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit agencies get the details from the credit bureau, the clients are sent a note informing them of the errors. The credit report companies then investigate the claims and make sure the errors are fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to handle disputes one by one. You will have to write or call 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 file, ranging from errors to data that’s not even yours. Your primary objective is to get the negative information removed from your credit report to increase your credit score.
Credit Repair isn’t a one-time task. It is an ongoing 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 agencies. During this period you will be informed of the progress each agency has made in resolving the negative information. 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 to read all agreements very carefully. In some cases it can be more difficult to fix certain problems if the credit reporting agencies need additional information, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to and never agree to terms that you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to consider 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 won’t be complicated. They simply want to be certain the information is accurate so 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 bureaus and have them remove it.
Once you have made the choice to utilize 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 interest rates or fees, you can start to challenge those negative items 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 will remove it. The challenge process takes a while and you might not have the patience to monitor 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 begin to improve and you’ll have the financial power you need to get the loan or credit you deserve!