Credit repair is a term used to describe the act of correcting errors on your credit reports. Credit repair software allows consumers to quickly improve their credit history and to rectify inaccurate information and errors on their credit report. The three major credit bureaus (Equifax, TransUnion, and Experian) compile your credit information and allow you to access it from anywhere. Since this information is considered public domain it is freely available for use by other companies and organizations. There is currently a high number of consumers that are searching for ways to improve their credit scores so that they can qualify for loan terms and other financial opportunities.
If you find that there are inaccurate entries on your report it may require you to do some additional research to verify that these entries are incorrect. If you find that these errors are valid, you will have to dispute the item with the creditor Credit repair. Disputing an entry does not affect the creditor’s credit rating. However, if you dispute an item that is accurate you may have to provide supporting documentation such as canceled checks or credit card statements. When credit repair is performed it is vital that the consumer has documentation to support their claim.
Once you have performed a self credit repair investigation and found legitimate errors on your reports the next step is to dispute them. You can dispute an item that is accurate or not depending on the situation. For example, if you have three credit card accounts that have recently been placed in delinquency, but the creditor states that you have only one account that shows a balance. This discrepancy may require you to add an account to your credit score to reflect the difference.
Credit repair professionals believe that it is better to contact the credit bureaus directly. Although, doing so may require you to pay an upfront fee, it is usually less than what you would have to pay a professional repair agency. Repairing your own credit reports is often the best method available when attempting to repair your credit score. Many people feel that by disputing items on their own they are more likely to receive some type of response from the credit bureaus.
When you hire a credit repair company or professional this same situation may occur. A common scenario is for the consumer to contact the credit bureau and dispute an item that is inaccurate or does not make any sense. After receiving the dispute the credit bureau may ask the company to re-submit the items in question to ensure that it is accurate. If the credit bureau did not remove the erroneous item, the consumer may then decide to hire a credit repair company or professional to remove the item. Credit repair companies are able to obtain certain information from the credit bureau that will help them remove the incorrect information.
Another scenario occurs when the consumer decides that they want to purchase a vehicle but the credit report does not contain enough information to approve their credit request. This can also occur when the consumer has made a few payments late and the creditor will not accept a new credit card application. When these circumstances occur it is important to notify the credit bureaus and request that they add the missing information. The credit bureaus are required to respond to the consumer within a reasonable amount of time. It may be necessary to file a dispute letter with the company that posted the incorrect information.