Credit Repair is an ongoing process, similar to the growth of another system. A system that works perfectly will require periodic monitoring and regular inspections to be certain the objectives of the system are achieved. The same is true for fixing one’s credit history, including understanding the various areas of interest which may be reported, identifying the numerous mistakes which may be created and learning how to fix credit score errors. Among the best ways to raise your credit score is via Credit Repair.
There are several areas that 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 get approved for home, auto and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a multitude of other issues. By way of 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.
When there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures 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 those mistakes. For example, the three largest credit repair agencies 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 which may be taken against them and other important information. One of the biggest problems that consumers face is the inability to correctly 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 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 the credit reporting agencies. So, what if a consumer decides to question that negative information? Is it officially valid?
This is a tricky question. In theory, it might appear 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 consumer’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 providers will simply instruct their clients not to take action to correct the problem. Why would they do this? 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 telling them that the information is inaccurate and need to be updated.
This situation plays out over daily. A consumer decides to buy a car and does a little bit of research to see what the price will be. After speaking with a trader, he makes the decision to buy the car. A few months pass by and he predicts the dealer and says the cost he is offered is far less than what he was 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 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 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 help you in this aspect of credit repair.