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 be certain the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the various areas of interest that can be reported, identifying the numerous mistakes which may be made and learning how to fix credit score errors. Among the best ways to improve your credit score is through Credit Repair.
There are several areas that are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This can lead to quite a few problems, like the inability to become 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 multitude of other problems. By way of instance, 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.
While there are no national 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 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 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. One of the biggest problems that consumers face is the inability to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, creditors are prohibited from making false statements about a consumer’s credit report. But, 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 this creditor reports that information to all the credit reporting bureaus. So, what if a consumer decides to challenge that negative information? Is it still legally valid?
This is a tricky question. In theory, it might appear that a creditor has every right to include incorrect 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 agencies take the dispute badly, the creditor will be asked to remove inaccurate negative things. But that will hardly ever happen.
Many credit repair providers will simply instruct their customers not to take action 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 inaccurate 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 telling them that the information is inaccurate and have to be updated.
This scenario plays out over daily. A consumer decides to buy a car and does a little bit of research to see what the price will be. After talking with a trader, he decides to purchase the car. A few months pass by and he predicts the dealer and says the cost he’s offered is much less than what he was told. He asks for a refund and is told that he cannot get a refund because the credit report contains an error.
The next step would be for 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 generate a formal dispute. If he hadn’t 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 company, you’re given the advantage of someone else being able to help you in this part of credit repair.