Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will need regular monitoring and regular reviews to make sure the objectives of the system are achieved. The same is true for fixing one’s credit history, including understanding the various regions 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 through Credit Repair.
There are numerous areas that are generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This may result in a number of problems, like the inability to become approved for home, auto and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not being able to get certain professional licenses; and a multitude of other issues. By way of example, missing data from a credit report can lower a person’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 ensure 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 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 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 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. 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 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 items 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 seriously, the creditor will be asked to remove inaccurate negative items. But this will hardly ever happen.
Many credit repair services will simply instruct their clients not to take action to correct the problem. Why would they do this? If a creditor refuses to 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 see what the cost will be. After talking with a trader, he makes the decision to buy the car. A couple of months pass by and he calls the dealer and says the cost he is offered is far 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 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 had done this before employing the credit repair company, he would have been able to generate 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 utilizing the services of a credit repair company, you are given the benefit of someone else being able to help you in this part of credit repair.