Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will need periodic monitoring and regular inspections to be certain the aims of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the different areas of interest which can be reported, identifying the various mistakes which may be made and learning how to fix credit score errors. One of the best ways to raise your credit score is via Credit Repair.
There are several areas which are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This may result in quite a few problems, like the inability to become approved for home, auto and business loans; being declined for employment; having poor credit report ratings; not qualifying for insurance; not being able to get certain professional licenses; and a multitude of other issues. By way of example, missing data from a credit report can lower an individual’s credit score by up to 200 points. The most common cause of this problem is the failure to report accurate information.
When there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to make certain that all consumers have access to fair and accurate reporting. The federal trade commission enacts many rules and guidelines to help Americans understand and avoid common mistakes and the negative consequences of those mistakes. For instance, the three largest credit repair agencies in the United States must notify consumers of the differences between debt settlement and bankruptcy in addition to the options available to them. The commission also requires credit bureaus to provide consumers with reasonable notices regarding changes in credit scores, any negative action that may be taken against them and other important information. One of the biggest problems that consumers face is the inability to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. However, it doesn’t matter if those statements are true or not. For instance, it’s perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if this creditor reports that information to all the credit reporting bureaus. So, what if a consumer decides to question that negative information? Is it still legally valid?
This is a tricky question. In theory, it might seem that a creditor has every right to include inaccurate negative things on a consumer’s credit report. But that would mean the creditor is practicing false advertisements. Most credit repair companies dispute negative items on a customer’s report. If the credit reporting agencies take the dispute badly, the creditor will be required to remove inaccurate negative things. But that will hardly ever occur.
Many credit repair providers will simply instruct their clients not to take action to correct the problem. Why would they do this? If a creditor won’t take action to correct inaccurate information, the credit bureau is under no obligation to remove erroneous information. The credit bureau can decide to investigate the dispute and take action to investigate prior to making a determination. Then it could issue a letter to the creditor telling them that the information is inaccurate and have to be updated.
This scenario plays out over daily. A consumer decides to purchase a car and does a little bit of research to see what the cost will be. After speaking with a dealer, he decides to purchase the car. A few months pass by and he predicts the dealer and says the price he is offered is far less than what he had been told. He asks for a refund and is told he can’t get a refund because the credit report contains an error.
The next step would be to allow him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he had done this before hiring the credit repair company, he would have been able to make a formal dispute. If he had not had the aid of the credit repair company, he might have had to attempt to make the dispute himself. By using the services of a credit repair company, you are given the advantage of someone else being able to help you in this aspect of credit repair.