Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will require regular monitoring and regular reviews to be certain that the aims of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the various areas of interest that may be reported, identifying the numerous mistakes which may be made and learning how to fix credit score errors. Among the best ways to improve your credit score is via Credit Repair.
There are numerous areas which are commonly confused throughout 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, automobile and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a large number of other problems. For instance, missing data from a credit report can lower an individual’s credit score by up to 200 points. The most common 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 make certain that all customers 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 these mistakes. By way of instance, the three largest credit repair bureaus 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 that may 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 about a consumer’s credit report. However, 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 that creditor reports that information to all the credit reporting bureaus. So, what if a consumer decides to question 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 inaccurate negative things on a consumer’s credit report. But that would mean the creditor is practicing false advertisements. Most credit repair services dispute negative items on a consumer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be asked to remove inaccurate negative items. But that will hardly ever happen.
Many credit repair services will simply instruct their clients 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 decide to investigate the dispute and take steps to investigate before 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 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 price will be. After speaking with a dealer, he makes the decision to purchase the car. A few months pass by and he calls the dealer and says the price he’s offered is far less than what he had been told. He asks for a refund and is told that he cannot 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 hiring the credit repair company, he would have managed to generate a formal dispute. If he hadn’t had the help of the credit repair company, he may have had to try 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.