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 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 customers to dispute inaccurate information in their credit reports. This prevents the adverse information from moving onto your credit file which further lowers your credit rating. Most credit repair companies are able to provide services in your local area. Additionally, there are companies that provide 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 errors 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 agencies with the details. After the credit bureaus get the details from the credit bureau, the customers 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 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, ranging from errors to data that’s not even yours. Your primary purpose is to have the negative information removed from your credit report to increase your credit score.
Credit Repair is not a one-time task. It’s an ongoing procedure that has to be addressed. When you hire a credit repair agency you should be ready 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 adverse 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. Sometimes it can be harder to fix certain problems if the credit reporting agencies need additional information, such as verification of employment. Always be certain that the agreement is clear on what you are agreeing to rather than 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. Lots of individuals 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 will not be complicated. They simply want to make certain that the information is accurate so they can avoid paying high rates of interest or being denied credit due to incorrect information. If you find any inaccurate or false information in your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the decision to utilize credit repair you must be proactive in monitoring your credit score and making sure all negative items 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 agencies will attempt to verify the negative information by contacting the original creditor. In the event they can’t prove the product is inaccurate they will remove it. The challenge process takes some time and you may not have the patience to monitor 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 begin to improve and you will have the financial power you will need to get the loan or credit you deserve!