Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will need periodic monitoring and regular inspections to make sure that the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the different regions of interest which may be reported, identifying the numerous mistakes which can be created and learning how to repair credit score errors. One of the best ways to improve your credit score is via Credit Repair.
There are several areas which are commonly confused during 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 become approved for home, auto and business loans; being declined for employment; having poor credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a large number of other problems. By way of example, 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.
When 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 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 these 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 properly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. But, it doesn’t matter if those 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 this creditor reports that information to all the credit reporting bureaus. So, what if a consumer decides to question that negative information? Is it officially valid?
This is a tricky question. In theory, it would appear that a creditor has every right to include incorrect negative things on a consumer’s credit report. But that would mean the creditor is practicing false advertisements. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute badly, the creditor will be asked to remove inaccurate negative things. But this will hardly ever occur.
Many credit repair providers will simply instruct their customers not to take action to fix 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 choose to investigate the dispute and take action 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 daily. 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 purchase 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 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 been able to generate a formal dispute. If he had not had the aid 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.