Credit repair is the process of correcting inaccurate, obsolete or incorrect information on a individual’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 possibly a lease or rental. It’s highly recommended to have your credit report professionally adjusted 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 negative information from moving onto your credit file which further lowers your credit rating. Most credit repair companies are able to provide services in your local area. There are also companies that offer 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 see if there are any mistakes 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 agencies with the details. After the credit bureaus receive the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then investigate the claims and make sure the errors are fixed.
Credit repair isn’t a simple task to accomplish, it takes patience and determination to handle disputes one . You will need to write or call your credit reporting agency at least one time to report the disputed information. There are a number of reasons why the credit reporting bureau may not remove negative information from your credit file, ranging from errors to data that is 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’s an ongoing procedure that has to be addressed. When you hire a credit repair agency you should be ready for one to 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 data, 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 don’t understand.
Besides working with the credit repair company to remove inaccurate information, you may also want to think about disputing credit report errors. Many 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 due to incorrect information. If you find any incorrect or false information on your report you can dispute it with the credit reporting agencies and have them remove it.
Once you have made the decision to use credit repair you have to be proactive in monitoring your credit score and ensuring all negative items are removed. If you end up consistently having high rates of interest or fees, you can start to challenge those negative items with the credit agencies. The credit bureaus will try to verify the negative information by contacting the original creditor. In the event they can’t prove the item is inaccurate they will remove it. The challenge process requires a while and you might not have the patience to monitor your score constantly but once you begin to see the numbers move in the right direction you will 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 will need to get the loan or credit you deserve!