Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will require periodic monitoring and regular reviews to make sure the aims of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the various regions of interest which can be reported, identifying the numerous mistakes that can be created and learning how to repair credit score errors. One of the best ways to improve your credit score is via 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 may lead to quite a few problems, like the inability to get approved for home, auto and business loans; being declined for employment; having poor credit report ratings; not qualifying for insurance; not being able 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 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 measures 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 example, the three largest credit repair bureaus in the United States must inform 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. One of the biggest problems that consumers face is the failure to properly understand the Fair Credit Reporting Act and its 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. For instance, it is 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 would seem 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 advertisements. Most credit repair services dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be required to remove inaccurate negative items. But that will hardly ever happen.
Many credit repair services will simply instruct their clients not to take action to correct 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 decide to investigate the dispute and take steps to investigate prior to 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 situation plays out over every day. A consumer decides to buy 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 buy the car. A few months pass by and he calls 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 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 employing the credit repair company, he would have managed to generate a formal dispute. If he hadn’t had the aid of the credit repair company, he may have had to try to make the dispute himself. By utilizing the services of a credit repair business, you are given the benefit of someone else being able to assist you in this part of credit repair.