Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will need regular monitoring and regular inspections to be certain that the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the various regions of interest which may be reported, identifying the various mistakes that may be made 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 that are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This can lead to a number of problems, like the inability to get approved for home, automobile and business loans; being declined for employment; having poor credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a multitude of other issues. By way of example, missing data from a credit report can lower a person’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 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 instance, the three largest credit repair bureaus in america 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 might be taken against them and other important information. Among the biggest issues that consumers face is the failure to properly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, lenders are prohibited from making false statements regarding a consumer’s credit report. But, 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 this creditor reports that information to all of the credit reporting agencies. 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 incorrect negative items on a consumer’s credit report. But that would mean that 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 seriously, the creditor will be asked to remove inaccurate negative things. But this will hardly ever occur.
Many credit repair providers will simply instruct their customers not to take action to fix 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 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 scenario plays out over daily. A consumer decides to buy a car and does a little bit of research to find out what the price will be. After talking with a dealer, he makes the decision to purchase the car. A few months pass by and he calls 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 he can’t 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’d done this before employing the credit repair company, he would have been able to generate a formal dispute. If he had not had the help 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 advantage of someone else being able to assist you in this part of credit repair.