Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a individual’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 is highly recommended to have your credit report professionally adjusted by means of a credit repair company before applying for any loans, credit cards, employment or any other financial transaction that requires a great 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 which further lowers your credit score. Most credit repair companies are able to provide services in the local area. There are also companies that offer nationwide positive identity repair support and services.
The credit repair process begins by the customer making an inquiry to the credit reporting agencies. They check to see if there are any mistakes in the information they are receiving from the 3 big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus receive the details from the credit bureau, the customers are sent a notice informing them of the errors. The credit report companies then investigate the claims and make sure the errors are fixed.
Credit repair isn’t an easy task to accomplish, it takes patience and determination to manage disputes one by one. You’ll 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 report, 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’s 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 details. When the negative 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 you read all agreements very carefully. Sometimes it can be harder to fix certain issues if the credit reporting agencies require additional data, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to rather than agree to terms that you don’t 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. Many people do not 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 make sure that the information is accurate so they can avoid paying high rates of interest or being denied credit due to incorrect information. If you discover any inaccurate or false information on your report you can dispute it with the credit reporting bureaus and have them remove it.
As soon as you have made the choice to utilize credit repair you must be proactive in monitoring your credit rating and making sure all negative items are removed. If you end up consistently having high interest rates or fees, you can start to challenge those negative things with the credit bureaus. The credit bureaus will try to check the negative information by contacting the original creditor. In the event they cannot prove the item is inaccurate they’ll remove it. The challenge process requires 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 glad you took the opportunity 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!