Credit repair is an intricate process. It involves more than just correcting mistakes on your credit reports. You need to take a number of steps before you can creditrepair even attempt to repair your credit yourself. This article will give you a general overview of what you need to do before attempting to fix your credit yourself.
The first thing that you must do is get a copy of your credit report from all three of the major credit bureaus. To do this, you can contact each of the credit bureaus by phone or online and request a copy of your file. Once you receive it, check it for any discrepancies. If you notice any wrong information, dispute it with the bureau immediately. Credit bureaus are required by law to investigate and resolve any discrepancies within 30 days.
Next, you need to investigate the credit repair companies that are listed as your credit repair companies of choice. Most companies offer free, initial services to remove errors. However, after this initial free service period, these companies may begin to raise your monthly or quarterly rates. For most people, this is not a big deal, but if you are looking into improving your financial situation, you need to be aware of any potential increases. Another thing that you should check for when disputing negative items on your report is whether or not the company offers you a free credit report once you have disputed the item with them.
One of the most important parts of disputing an error with your report is to ensure that the item is not a genuine error. There are many people who make the mistake of believing that just because they have an error on their report that the entire report is inaccurate. This is not the case. Only items that are inaccurate will stay on your credit report. Therefore, you should never submit inaccurate information as a way of repairing your report.
One of the biggest mistakes that consumers make when it comes to using credit repair services is that they do not take the time to check their credit scores. Many people think that their credit scores are nothing more than a list of where they were at one point, and that these scores are totally irrelevant to whether or not they can qualify for a loan. While your credit scores can affect your ability to get a loan, lenders often turn to your credit scores in order to determine your risk level. For this reason, checking your credit scores is a very important step when it comes to credit repair services.
Finally, you need to find out what the guidelines for disputing items on your credit reports are. Many credit bureaus offer free, no obligation services to help you dispute items on your credit reports. If you are unable to reach an agreement with the credit bureaus over the disputed issue, then you will likely need to hire a professional company to assist you in examining your credit reports and disputing items on them. However, be aware that some credit bureaus will have limits as to how many disputes can be made against a specific report, and that these could potentially cost you hundreds of dollars. If you have any doubts as to whether or not a dispute will work, you should contact the credit bureaus to ask for their opinion prior to attempting to make a dispute.