Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. A true credit report is vitally 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 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 going onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in the community area. Additionally, there are companies that offer nationwide positive identity repair service and solutions.
The credit repair process begins by the customer making an inquiry to the credit reporting agencies. They check to see if there are any errors in the information they are receiving from the three major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit bureaus receive the details from the credit bureau, the customers are sent a note informing them of the errors. The credit report companies then look into the claims and make sure the errors are fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to manage disputes one . You’ll need to write or telephone your credit reporting bureau at least one time to report the disputed information. There are a number of reasons why the credit reporting agency may not remove negative information from your credit report, ranging from errors to data that is not even yours. Your primary purpose 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 an ongoing procedure that needs to be addressed. When you hire a credit repair service you should be ready for one or 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 information. When the adverse 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. 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 certain that the agreement is clear on what you’re 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 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 sure 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 in your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the decision to use credit repair you must be proactive in monitoring your credit rating and ensuring 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’ll remove it. The challenge process takes a while and you might not have the patience to observe your score constantly but as soon as you start to see the numbers move in the right direction you’ll be happy you took the opportunity to utilize 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!