Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report. An accurate credit report is vitally 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’s advisable 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 clients to dispute inaccurate information on their credit reports. This prevents the negative information from going onto your credit file which further lowers your credit score. Most credit repair companies have the ability to provide services in your community area. There are also companies that offer nationwide positive identity repair service and services.
The credit repair process begins by the client making an inquiry to the credit reporting bureaus. They check to find out if there are any errors 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 agencies with the details. After the credit bureaus get the details from the credit bureau, the clients are sent a notice informing them of the mistakes. The credit report companies then investigate the claims and make certain that the errors are fixed.
Credit repair isn’t an easy task to accomplish, it takes 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 a number of 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 purpose 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 agency you should be ready for one or two weeks of correspondence between you and the credit reporting bureaus. 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 to read all agreements very carefully. Sometimes it can be harder to fix certain problems if the credit reporting agencies require additional information, such as verification of employment. Always make certain that the agreement is clear on what you are agreeing to and never agree to terms which you do not understand.
In addition to working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Lots of 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 will not be complicated. They simply want to make certain the information is accurate in order that 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 agencies and have them remove it.
As soon as you have made the choice to use credit repair you must be proactive in monitoring your credit rating and ensuring all negative things are removed. If you find yourself consistently having high rates of interest or fees, you can begin 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 item is inaccurate they’ll remove it. The challenge process takes a while and you may 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 will be happy you took the time to work with credit repair. Your credit score will start to improve and you will have the financial power you need to get the loan or credit you deserve!