Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. A true credit report is vitally important for getting any sort of financial help. Inaccurate information can cause embarrassing situations like being turned down for a loan, credit card, job or possibly a lease or rental. It’s highly recommended to have your credit report professionally adjusted 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 are able to provide services in your local area. There are also companies that offer nationwide positive identity repair service and solutions.
The credit repair process starts by the client making an inquiry to the credit reporting agencies. They check to find out if there are any mistakes 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 agencies get the details from the credit bureau, the customers 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 is not an easy task to accomplish, it takes patience and determination to handle disputes one by one. You’ll have to write or telephone your credit reporting agency 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, which range from errors to data that’s not even yours. Your primary objective 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 service 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 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 more difficult to fix certain issues if the credit reporting agencies need additional information, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to and never agree to terms which 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. Lots of people 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 incorrect 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 use credit repair you have to be proactive in monitoring your credit score and making sure all negative things are removed. If you find yourself consistently having high interest rates 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 calling the original creditor. In the event they cannot prove the product is inaccurate they’ll remove it. The challenge process requires 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’ll be glad you took the time to work with credit repair. Your credit score will start to improve and you’ll have the financial power you need to get the loan or credit you deserve!