Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will require periodic monitoring and regular reviews to be certain the aims of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different regions of interest that may be reported, identifying the various mistakes which may be created and learning how to repair credit score errors. Among the best ways to improve your credit score is through Credit Repair.
There are several areas which are commonly confused throughout 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 become approved for home, auto and business loans; being diminished for employment; having bad credit report evaluations; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a multitude of other issues. 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 federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to ensure that all customers have access to fair and accurate 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 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 that might be taken against them and other important information. Among the biggest problems that consumers face is the inability to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. But, it doesn’t matter if these statements are true or not. As an example, 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 of the credit reporting bureaus. So, what if a consumer decides to challenge that negative information? Is it officially 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 the creditor is practicing false advertisements. 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 required to remove inaccurate negative things. But that will hardly ever occur.
Many credit repair services will simply instruct their customers not to take steps to correct 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 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 need 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 few months pass by and he predicts the dealer and says the cost he is 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 comprises 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 had done this before employing the credit repair company, he would have been able to generate a formal dispute. If he hadn’t had the help of the credit repair company, he might have had to attempt to make the dispute himself. By using 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.