Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a person’s credit report. An accurate 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 possibly a lease or rental. It is advisable 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 in their credit reports. This prevents the adverse information from moving onto your credit file that further lowers your credit score. Most credit repair companies are able to provide services in your community area. There are also companies that provide 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 3 big credit reporting agencies: 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 clients are sent a notice informing them of the errors. The credit report companies then look into the claims and make certain that the errors have been fixed.
Credit repair is not an easy task to accomplish, it takes patience and determination to handle disputes one by 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 file, which range from errors to data that’s not even yours. Your primary purpose is to get the negative information removed from your credit report to improve your credit score.
Credit Repair isn’t a one-time task. It’s an ongoing procedure that needs to be addressed. When you hire a credit repair agency you should be prepared 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 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 issues if the credit reporting agencies require additional data, such as verification of employment. Always be certain that the agreement is clear on what you are agreeing to rather than agree to terms that you do not understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to consider 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 certain that the information is accurate so they can avoid paying high interest rates or being denied credit because of incorrect information. If you discover any incorrect or false information in your report you can dispute it with the credit reporting agencies and have them remove it.
As soon as you have made the decision to utilize credit repair you have to be proactive in monitoring your credit score and ensuring all negative items 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 agencies will attempt to check the negative information by contacting the original creditor. In the event they cannot prove the product is inaccurate they will remove it. The challenge process takes a while and you may not have the patience to monitor your score constantly but as soon as you begin 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 will need to get the loan or credit you deserve!