Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will need regular monitoring and regular inspections to make sure that the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the various areas of interest which can be reported, identifying the various mistakes that may be created and learning how to fix credit score errors. Among the best ways to raise your credit score is via Credit Repair.
There are several areas which are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can lead to a number of problems, such as 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 having the ability to get certain professional licenses; and a multitude of other issues. For 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 federal 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 agencies 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 might be taken against them and other important information. Among the biggest problems that consumers face is the failure to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. However, it doesn’t matter if these statements are true or not. For instance, 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 still legally valid?
This is a tricky question. In theory, it would seem 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 companies dispute negative items on a consumer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be required to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair services will simply instruct their customers not to take steps 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 erroneous information. The credit bureau can decide to investigate the dispute and take steps to investigate prior to making a determination. Then it might issue a letter to the creditor telling them that the information is inaccurate and have 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 speaking with a trader, he makes the decision to purchase the car. A couple of months pass by and he predicts the dealer and says the cost he is offered is much less than what he had been 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 would be for him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he had 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 business, you’re given the benefit of someone else being able to assist you in this part of credit repair.