Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will require regular monitoring and regular inspections to be certain the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the various regions of interest that can be reported, identifying the various mistakes that can be created and learning how to fix credit score errors. Among the best ways to improve your credit score is through Credit Repair.
There are several areas which are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This can result in a number of problems, such as the inability to become approved for home, automobile and business loans; being diminished for employment; having poor credit report evaluations; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other problems. For instance, 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.
While there are no national 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. By way of 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 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 may be taken against them and other important information. One of 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. However, it doesn’t matter if these 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 bureaus. So, what if a consumer decides to question that negative information? Is it officially 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 the creditor is practicing false advertisements. Most credit repair services dispute negative items on a consumer’s report. If the credit reporting bureaus 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 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 action to investigate before making a determination. Then it might issue a letter to the creditor notifying them that the information is inaccurate and have to be updated.
This situation plays out over every day. A consumer decides to purchase a car and does a little bit of research to find out what the price will be. After talking with a trader, he decides to buy the car. A couple of months pass by and he predicts the dealer and says the price he is offered is far less than what he had been told. He asks for a refund and is told that he can’t get a refund because the credit report comprises an error.
The next step would be for him to send a letter to the credit reporting bureau, 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 using the services of a credit repair company, you are given the advantage of someone else being able to assist you in this part of credit repair.