Credit repair is the process of correcting inaccurate, obsolete or erroneous 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 adjusted by a credit repair company before you apply 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 in their credit reports. This prevents the negative information from moving onto your credit file that further lowers your credit score. Most credit repair companies are able to provide services in the community area. There are also companies that provide nationwide positive identity repair support and solutions.
The credit repair process begins by the client making an inquiry to the credit reporting agencies. They check to see if there are any mistakes in the information they are getting from the 3 major credit reporting bureaus: Experian, TransUnion and Equifax. If errors are found they contact the credit bureaus with the details. After the credit bureaus get the details from the credit bureau, the clients are sent a note informing them of the errors. The credit report companies then look into the claims and make certain that the errors are fixed.
Credit repair is not an easy task to accomplish, it takes patience and determination to handle disputes one by one. You’ll have to write or call your credit reporting agency 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 report, 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 improve your credit score.
Credit Repair isn’t a one-time task. It’s a continuous procedure that needs to be addressed. When you hire a credit repair agency you should be prepared for one to 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 negative 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 harder to fix certain issues if the credit reporting agencies require additional data, such as verification of employment. Always be certain that the agreement is clear on what you are agreeing to and never agree to terms that you don’t 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 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 won’t be complicated. They simply want to be sure that the information is accurate in order that they can avoid paying high interest rates or being denied credit due to incorrect information. If you find any incorrect or false information in your report you can dispute it with the credit reporting bureaus and have them remove it.
As soon as you have made the choice to use credit repair you must be proactive in monitoring your credit score and ensuring all negative things 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 bureaus. The credit bureaus will attempt 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 some time 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 time to work with credit repair. Your credit score will start to improve and you will have the financial power you will need to get the loan or credit you deserve!