Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will need periodic monitoring and regular reviews to be certain that the objectives of the system are achieved. The same is true for fixing one’s credit history, including understanding the different areas of interest which can be reported, identifying the various mistakes that can 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 numerous areas that are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can lead to quite a few problems, like the inability to get approved for home, auto and business loans; being declined for employment; having bad credit report evaluations; not qualifying for insurance; not being able to get certain professional licenses; and a large number of other problems. For instance, 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.
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 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 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 inability to correctly 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. However, it doesn’t matter if these statements are true or not. For instance, 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 would seem 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 advertisements. Most credit repair services 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 items. 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 inaccurate information. The credit bureau can choose to investigate the dispute and take action to investigate prior to making a determination. Then it might issue a letter to the creditor telling them that the information is inaccurate and need to be updated.
This situation plays out over every day. 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 trader, 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 that he can’t get a refund because the credit report contains an error.
The next step would be for him to send a letter to the credit reporting agency, 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 had not 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’re given the benefit of someone else being able to help you in this part of credit repair.