Credit Repair is an ongoing process, like the development of any other system. A system that works perfectly will need periodic monitoring and regular inspections to be certain 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 which can be reported, identifying the various mistakes which 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 commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This may lead to a number of problems, like 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 issues. For instance, 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 national 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. By way of instance, the three largest credit repair bureaus in america must notify consumers of the differences between debt settlement and bankruptcy as well as the options 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 own rights.
Under FCRA, creditors 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 that creditor reports that information to all 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 would seem that a creditor has every right to include incorrect negative items on a consumer’s credit report. But that would mean the creditor is practicing false advertising. Most credit repair services dispute negative items on a consumer’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 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 steps to investigate before making a determination. Then it could 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 purchase a car and does a little bit of research to see what the price will be. After talking with a dealer, he makes the decision to purchase the car. A couple of months pass by and he calls the dealer and says the price he’s offered is much less than what he was told. He asks for a refund and is told he can’t get a refund because the credit report contains 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 had done this before hiring the credit repair company, he would have been able to make a formal dispute. If he had not had the aid of the credit repair company, he might have had to try to make the dispute himself. By using the services of a credit repair business, you are given the advantage of someone else being able to help you in this aspect of credit repair.