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 be certain the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the different areas of interest which may be reported, identifying the numerous mistakes which may be created 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 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 get approved for home, auto and business loans; being diminished for employment; having poor credit report evaluations; not qualifying for insurance; not being able to get certain professional licenses; and a large number 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.
While 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 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 these mistakes. For instance, the three largest credit repair agencies in america 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 which might be taken against them and other important information. One of the biggest issues 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 regarding a consumer’s credit report. However, it doesn’t matter if these 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 might 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 advertising. Most credit repair companies dispute negative items on a customer’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 providers will simply instruct their customers not to take steps to fix the problem. Why would they do this? If a creditor won’t 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 steps to investigate prior to 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 daily. A consumer decides to purchase a car and does a little bit of research to see what the price will be. After speaking with a dealer, he makes the decision to buy the car. A few months pass by and he calls the dealer and says the price he is offered is much less than what he had been told. He asks for a refund and is told he cannot 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’d done this before employing the credit repair company, he would have managed to make 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’re given the advantage of someone else being able to assist you in this part of credit repair.