Credit repair is the process of correcting inaccurate, obsolete or erroneous information on a person’s credit report. A true 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 even a lease or rental. It’s advisable to have your credit report professionally adjusted by 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 customers to dispute inaccurate information on their credit reports. This prevents the adverse information from going onto your credit file which further lowers your credit score. Most credit repair companies are able to provide services in your local area. Additionally, there are companies that provide nationwide positive identity repair service and services.
The credit repair process starts by the client making an inquiry to the credit reporting agencies. They check to find out if there are any errors in the information they are receiving 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 customers are sent a notice informing them of the mistakes. The credit report companies then look into the claims and make certain that the errors are fixed.
Credit repair is not a simple task to accomplish, it takes patience and determination to manage disputes one by one. You will have 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 bureau may not remove negative information from your credit report, ranging from errors to data that is not even yours. Your primary objective is to get the negative information removed from your credit report to improve your credit score.
Credit Repair is not a one-time task. It is an ongoing procedure that needs 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’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 you 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 make sure that the agreement is clear on what you are agreeing to rather than agree to terms that you do not understand.
In addition to working with the credit repair company to remove inaccurate information, you might also want to consider disputing credit report errors. Lots of people do not 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 make certain that the information is accurate so they can avoid paying high interest rates 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 choice to utilize credit repair you must be proactive in monitoring your credit rating and making sure all negative things are removed. If you end up consistently having high rates of interest or fees, you can begin to challenge those negative things with the credit bureaus. The credit bureaus will try to verify the negative information by contacting the original creditor. In the event they can’t prove the product is inaccurate they will remove it. The challenge process takes a while and you might not have the patience to observe your score constantly but as soon as you begin to see the numbers move in the right direction you’ll be glad you took the opportunity to utilize 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!