Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will require regular monitoring and regular reviews to make sure that the objectives of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different areas of interest that can be reported, identifying the various mistakes which may be created and learning how to fix credit score errors. One of the best ways to improve 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 can result in quite a few problems, like the inability to become approved for home, automobile and business loans; being declined for employment; having bad credit report evaluations; not qualifying for insurance; not having the ability to get certain professional licenses; and a multitude of other issues. 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.
While there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to ensure 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. For example, the three largest credit repair agencies in america must inform consumers of the differences between debt settlement and bankruptcy in addition to 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 issues 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 regarding a consumer’s credit report. But, 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 of the credit reporting bureaus. So, what if a consumer decides to challenge 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 inaccurate negative things on a consumer’s credit report. But that would mean that the creditor is practicing false advertising. 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 required to remove inaccurate negative items. But that will hardly ever occur.
Many credit repair providers will simply instruct their clients not to take steps 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 choose to investigate the dispute and take steps to investigate before making a determination. Then it might issue a letter to the creditor notifying 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 trader, he makes the decision to purchase the car. A few months pass by and he calls the dealer and says the price 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 would be to allow him to send a letter to the credit reporting agency, 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 hadn’t had the help of the credit repair company, he might have had to attempt 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.