Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will require periodic monitoring and regular reviews to be certain the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the different areas of interest that may be reported, identifying the numerous mistakes that can be created and learning how to repair credit score errors. One of the best ways to raise your credit score is via Credit Repair.
There are numerous areas which are generally 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 declined for employment; having poor credit report evaluations; not qualifying for insurance; not being able to obtain certain professional licenses; and a large number of other problems. For 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.
When there are no federal 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 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. Among 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. As an example, it is perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if that creditor reports that information to all of 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 inaccurate negative items 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 bureaus take the dispute badly, 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 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 inaccurate information. The credit bureau can choose to investigate the dispute and take steps to investigate before making a determination. Then it could issue a letter to the creditor notifying them that the information is inaccurate and have to be updated.
This scenario plays out over every day. A consumer decides to purchase a car and does a little bit of research to find out what the cost will be. After speaking with a dealer, he decides to purchase the car. A few months pass by and he predicts the dealer and says the cost he’s offered is far less than what he had been 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 is to allow 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 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 using 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.