Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will need periodic monitoring and regular reviews to make sure that the objectives of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the different areas of interest which may be reported, identifying the numerous mistakes that may be made and learning how to repair credit score errors. One of the best ways to raise your credit score is through Credit Repair.
There are several areas that are generally confused throughout 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 get approved for home, auto and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a multitude of other issues. 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 national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to make certain 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 those mistakes. For 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 choices available to them. The commission also requires credit bureaus to provide consumers with reasonable notices regarding changes in credit scores, any negative action that might be taken against them and other important information. Among the biggest issues that consumers face is the inability to properly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, creditors are prohibited from making false statements about a consumer’s credit report. However, 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 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 seem that a creditor has every right to include incorrect negative things 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 customer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be asked 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 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 inaccurate information. The credit bureau can decide to investigate the dispute and take action to investigate before making a determination. Then it could issue a letter to the creditor notifying them that the information is inaccurate and need to be updated.
This scenario plays out over every day. A consumer decides to purchase a car and does a little bit of research to find out what the cost will be. After talking with a trader, he makes the decision to buy the car. A couple of months pass by and he predicts the dealer and says the cost he’s offered is much 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 bureau, disputing the errors on his credit report. If he’d done this before employing 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 may have had to attempt to make the dispute himself. By utilizing the services of a credit repair company, you are given the benefit of someone else being able to assist you in this part of credit repair.