Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will require regular monitoring and regular inspections to make sure the aims of the system are achieved. The exact 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 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 throughout the credit repair process, the first of which is inaccurate or incomplete information. This can lead to a number of problems, like the inability to become approved for home, automobile and business loans; being declined for employment; having poor credit report ratings; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude 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 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 these 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 which 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 own rights.
Under FCRA, lenders are prohibited from making false statements about 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 this creditor reports that information to all of the credit reporting agencies. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it might seem 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 things. But that will hardly ever occur.
Many credit repair services will simply instruct their customers not to take action to fix 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 inaccurate 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 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 find out what the cost will be. After talking with a dealer, he decides to purchase the car. A few 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 he can’t get a refund because the credit report contains an error.
The next step is for him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he had done this before employing the credit repair company, he would have been able 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 using the services of a credit repair business, you’re given the advantage of someone else being able to help you in this part of credit repair.