Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report.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 like being turned down for a loan, credit card, job or even a lease or rental. It is advisable to have your credit report professionally corrected by means of a credit repair company before you apply for any loans, credit cards, employment or any other financial transaction that requires a great credit score.
A credit repair program helps clients to dispute inaccurate information in 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 local area. Additionally, there are companies that offer nationwide positive identity repair support 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 mistakes in the information they are getting from the three big credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus get the details from the credit bureau, the clients 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 is not an easy task to accomplish, it requires patience and determination to handle disputes one by one. You will need to write or telephone your credit reporting agency 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, 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 improve your credit score.
Credit Repair isn’t a one-time task. It is a continuous procedure that has to be addressed. When you hire a credit repair agency you should be prepared for one to 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. 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 you read all agreements very carefully. Sometimes it can be harder to fix certain problems if the credit reporting agencies need 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 which you do not understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to think about disputing credit report errors. Many individuals don’t realize they even have problems with their credit until they apply for a mortgage or a car loan. For lots of people this process won’t 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 on 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 must be proactive in monitoring your credit rating and ensuring all negative things are removed. If you end up consistently having high interest rates or fees, you can begin to challenge those negative things with the credit agencies. The credit agencies will attempt to check the negative information by contacting the original creditor. In the event they cannot prove the item is inaccurate they will 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 begin to see the numbers move in the right direction you’ll 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!