Credit Repair is an ongoing process, like the growth of any other system. A system that works perfectly will require periodic monitoring and regular reviews to make sure that the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the different areas of interest that may be reported, identifying the various mistakes which may be created and learning how to fix credit score errors. One of the best ways to improve your credit score is through Credit Repair.
There are numerous areas that are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This may result in a number of problems, such as the inability to get approved for home, automobile and business loans; being declined for employment; having bad credit report evaluations; not qualifying for insurance; not being able to get certain professional licenses; and a multitude of other problems. For example, missing data from a credit report can lower an individual’s credit score by up to 200 points. The usual cause of this problem is the failure to report accurate information.
When there are no federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to make certain that all consumers have access to accurate and fair 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. By way of instance, the three largest credit repair bureaus in the United States must notify consumers of the differences between debt settlement and bankruptcy as well as 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. Among 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 regarding a consumer’s credit report. But, 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 challenge 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 incorrect negative items on a consumer’s credit report. But that would mean the creditor is practicing false advertising. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute badly, the creditor will be required to remove inaccurate negative items. But this will hardly ever happen.
Many credit repair providers will simply instruct their clients not to take steps to fix the problem. Why would they do that? If a creditor refuses to take steps 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 steps to investigate before 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 situation plays out over every day. A consumer decides to buy a car and does a little bit of research to see what the price will be. After talking with a trader, he makes the decision to buy the car. A few months pass by and he calls the dealer and says the cost he is offered is far less than what he had been told. He asks for a refund and is told that he cannot get a refund because the credit report contains an error.
The next step is for him to send a letter to the credit reporting agency, 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 hadn’t 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 business, you’re given the advantage of someone else being able to help you in this part of credit repair.