Credit Repair is an ongoing process, like the development of any other system. A system that works perfectly will need periodic monitoring and regular reviews to make sure that the aims of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the various areas of interest that can be reported, identifying the various mistakes which can be created and learning how to repair credit score errors. Among the best ways to raise your credit score is via Credit Repair.
There are numerous areas which are generally confused throughout 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, auto and business loans; being declined for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a large number 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 ensure 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 these mistakes. For instance, the three largest credit repair bureaus 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 which may be taken against them and other important information. One of the biggest issues that consumers face is the inability to properly understand the Fair Credit Reporting Act and its 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. 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 officially valid?
This is a tricky question. In theory, it would appear that a creditor has every right to include inaccurate negative things on a consumer’s credit report. But that would mean that the creditor is practicing false advertising. 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 asked to remove inaccurate negative things. But that will hardly ever happen.
Many credit repair providers will simply instruct their customers not to take action to fix the problem. Why would they do that? If a creditor won’t take steps to correct inaccurate information, the credit bureau is under no obligation to remove erroneous information. The credit bureau can choose 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 have to be updated.
This situation plays out over daily. A consumer decides to purchase a car and does a little bit of research to find out what the cost will be. After speaking with a dealer, he makes the decision to purchase the car. A few months pass by and he predicts the dealer and says the price he’s offered is much less than what he was told. He asks for a refund and is told he can’t get a refund because the credit report comprises an error.
The next step is to allow him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he’d done this before hiring the credit repair company, he would have managed to generate a formal dispute. If he had not had the help of the credit repair company, he may have had to try to make the dispute himself. By utilizing the services of a credit repair company, you’re given the benefit of someone else being able to assist you in this aspect of credit repair.