Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’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’s highly recommended 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 clients to dispute inaccurate information in their credit reports. This prevents the negative information from going onto your credit file which further lowers your credit rating. Most credit repair companies are able to provide services in your community area. Additionally, there are companies that provide nationwide positive identity repair service and services.
The credit repair process begins by the customer making an inquiry to the credit reporting bureaus. They check to find out if there are any mistakes in the information they are receiving 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 agencies 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 certain that the errors are fixed.
Credit repair isn’t a simple task to accomplish, it takes patience and determination to handle disputes one . You’ll have to write or call your credit reporting bureau at least one time to report the disputed information. There are a number of 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 purpose is to get 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 service you should be prepared for one to two weeks of correspondence between you and the credit reporting agencies. During this period you’ll be informed of the progress each agency has made in resolving the negative details. 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 more difficult to fix certain problems 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 and never agree to terms that 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 lots of people this process will not be complicated. They simply want to be sure the information is accurate so they can avoid paying high interest rates or being denied credit due to incorrect information. If you discover any inaccurate or false information in your report you can dispute it with the credit reporting bureaus and have them remove it.
As soon as you have made the decision to utilize credit repair you have to 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 attempt to check the negative information by contacting the original creditor. In the event they cannot prove the product is inaccurate they’ll remove it. The challenge process requires some time and you may 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 time to utilize credit repair. Your credit score will start to improve and you will have the financial power you will need to get the loan or credit you deserve!