Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will require periodic monitoring and regular inspections 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 areas of interest which may be reported, identifying the various mistakes which may be created and learning how to repair credit score errors. Among the best ways to raise 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 quite a few problems, like 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 being able to get certain professional licenses; and a multitude of other issues. By way of 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.
While there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to make certain 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. By way of instance, the three largest credit repair bureaus in the United States must notify 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 issues that consumers face is the failure to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, creditors are prohibited from making false statements about a consumer’s credit report. But, it doesn’t matter if those 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 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 inaccurate negative things on a consumer’s credit report. But that would mean the creditor is practicing false advertising. Most credit repair services 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 items. But this will hardly ever happen.
Many credit repair services will simply instruct their customers not to take steps to correct the problem. Why would they do this? If a creditor won’t take action 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 prior to making a determination. Then it could issue a letter to the creditor telling them that the information is inaccurate and have to be updated.
This scenario plays out over daily. A consumer decides to buy a car and does a little bit of research to find out what the cost will be. After talking with a dealer, he makes the decision 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 was told. He asks for a refund and is told that he can’t get a refund because the credit report contains an error.
The next step would be to allow 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 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 aspect of credit repair.