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 type of financial help. Inaccurate information can cause embarrassing situations such as 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 means of 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 clients to dispute inaccurate information on their credit reports. This prevents the adverse information from moving onto your credit file which further lowers your credit rating. Most credit repair companies have the ability to provide services in the local area. Additionally, there are companies that provide nationwide positive identity repair service and solutions.
The credit repair process starts by the customer making an inquiry to the credit reporting bureaus. They check to find out if there are any mistakes in the information they are getting from the three 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 customers are sent a note informing them of the errors. 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 requires patience and determination to manage disputes one by one. You’ll have 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, ranging from errors to data that is not even yours. Your primary purpose 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 service you should be ready for one or two weeks of correspondence between you and the credit reporting bureaus. During this period you will be informed of the progress each agency has made in resolving the negative details. 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 to read all agreements very carefully. Sometimes it can be more difficult 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 are agreeing to rather than agree to terms that you don’t understand.
In addition to working with the credit repair company to remove inaccurate information, you may also want to think about disputing credit report errors. Lots of individuals 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 the information is accurate so they can avoid paying high interest rates or being denied credit because of 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.
As soon as you have made the decision to use credit repair you have to be proactive in monitoring your credit score and making sure all negative items are removed. If you find yourself consistently having high interest rates or fees, you can begin 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 can’t prove the item is inaccurate they’ll remove it. The challenge process takes a while and you may not have the patience to observe your score constantly but once you start 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 need to get the loan or credit you deserve!