Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will require periodic monitoring and regular reviews to make sure the objectives of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the different regions of interest that may be reported, identifying the numerous mistakes that can be created and learning how to fix credit score errors. Among the best ways to raise your credit score is through Credit Repair.
There are several areas which are generally confused during 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 get approved for home, automobile and business loans; being diminished for employment; having bad credit report evaluations; not qualifying for insurance; not being able to get certain professional licenses; and a large number of other issues. For 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 make certain that all consumers 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 options available to them. The commission also requires credit bureaus to provide consumers with reasonable notices regarding changes in credit scores, any negative action which may be taken against them and other important information. One of the biggest issues that consumers face is the failure 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 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 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 items. But that will hardly ever occur.
Many credit repair services 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 erroneous information. The credit bureau can decide to investigate the dispute and take action 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 see what the cost will be. After talking with a dealer, he decides to buy the car. A couple of months pass by and he predicts 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 that he cannot get a refund because the credit report comprises 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’d done this before hiring the credit repair company, he would have managed to make a formal dispute. If he had not had the help of the credit repair company, he might have had to attempt 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 assist you in this aspect of credit repair.