Credit repair is the process of correcting inaccurate, outdated or incorrect information on a person’s credit report.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 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 great credit score.
A credit repair program helps customers to dispute inaccurate information in 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 community area. There are also companies that offer nationwide positive identity repair service and solutions.
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 agencies get the details from the credit bureau, the clients are sent a note informing them of the mistakes. The credit report companies then look into the claims and make sure the errors are fixed.
Credit repair is not a simple task to accomplish, it requires patience and determination to handle disputes one by one. You’ll have to write or call your credit reporting bureau at least one time to report the disputed information. There are many reasons why the credit reporting bureau 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 increase your credit score.
Credit Repair is not a one-time task. It’s an ongoing procedure that needs 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’ll be informed of the progress each agency has made in resolving the negative details. When the negative 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 to read all agreements very carefully. In some cases it can be more difficult to fix certain problems if the credit reporting agencies need additional information, such as verification of employment. Always be sure that the agreement is clear on what you are agreeing to rather than agree to terms which you do not 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. 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 will not be complicated. They simply want to be certain the information is accurate so they can avoid paying high interest rates 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 decision to utilize credit repair you must be proactive in monitoring your credit score and making sure all negative items are removed. If you find yourself consistently having high rates of interest or fees, you can start to challenge those negative items with the credit agencies. The credit agencies will try to verify 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 requires a while and you may not have the patience to monitor your score constantly but once you start to see the numbers move in the right direction you will be happy you took the opportunity to utilize credit repair. Your credit score will begin to improve and you will have the financial power you need to get the loan or credit you deserve!