Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a individual’s credit report. An accurate credit report is critically important for getting any sort 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 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 negative information from going onto your credit file that further lowers your credit score. Most credit repair companies are able to provide services in the local area. Additionally, there are companies that provide nationwide positive identity repair support 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 getting from the 3 big credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus receive 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 sure the errors are fixed.
Credit repair isn’t an easy task to accomplish, it takes patience and determination to manage disputes one by one. You’ll need 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 is 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 is an ongoing procedure that has 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 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 to read all agreements very carefully. Sometimes it can be more difficult to fix certain problems if the credit reporting agencies require additional information, such as verification of employment. Always make sure that the agreement is clear on what you’re agreeing to rather than agree to terms which you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you might also want to think about disputing credit report errors. Many 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 won’t be complicated. They simply want to be sure the information is accurate so they can avoid paying high rates of interest or being denied credit due to incorrect information. If you discover any inaccurate 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 choice to use credit repair you have to be proactive in monitoring your credit rating and ensuring all negative things are removed. If you end up consistently having high rates of interest or fees, you can start to challenge those negative things with the credit bureaus. The credit agencies will attempt to verify 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 some time 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 will have the financial power you need to get the loan or credit you deserve!