Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will need periodic monitoring and regular reviews to be certain that the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the various areas of interest that can be reported, identifying the numerous mistakes that may be made and learning how to repair credit score errors. One of the best ways to improve your credit score is through Credit Repair.
There are numerous areas that are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This can result in quite a few problems, such as the inability to get approved for home, automobile and business loans; being declined for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a large number of other problems. For 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 federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to ensure that all customers 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 these mistakes. By way of instance, the three largest credit repair bureaus in the United States must inform 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. Among the biggest problems that consumers face is the failure to correctly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, creditors are prohibited from making false statements regarding a consumer’s credit report. But, it doesn’t matter if those statements are true or not. As an example, it is perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if that creditor reports that information to all of the credit reporting agencies. 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 appear that a creditor has every right to include inaccurate negative items on a consumer’s credit report. But that would mean that the creditor is practicing false advertising. Most credit repair services 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 things. But this will hardly ever occur.
Many credit repair providers will simply instruct their clients not to take steps 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 inaccurate information. The credit bureau can choose 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 price will be. After talking with a dealer, he makes the decision to purchase the car. A few months pass by and he predicts the dealer and says the cost he is offered is much less than what he was told. He asks for a refund and is told that he cannot get a refund because the credit report comprises 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 employing the credit repair company, he would have been able to make a formal dispute. If he had not had the help of the credit repair company, he might have had to try 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 assist you in this aspect of credit repair.