Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will require regular monitoring and regular inspections to be certain that 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 various mistakes which can be created and learning how to fix credit score errors. One of the best ways to improve your credit score is through Credit Repair.
There are numerous areas that are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This can result in a number of problems, such as the inability to become approved for home, automobile and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a multitude of other problems. For 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 steps 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 instance, the three largest credit repair bureaus 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 that may be taken against them and other important information. Among the biggest issues that consumers face is the inability to correctly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, creditors are prohibited from making false statements regarding a consumer’s credit report. However, it doesn’t matter if those 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 question 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 advertisements. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But this 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 that? 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 decide to investigate the dispute and take steps to investigate prior to making a determination. Then it could issue a letter to the creditor notifying them that the information is inaccurate and need to be updated.
This situation plays out over every day. A consumer decides to buy a car and does a little bit of research to find out what the cost will be. After speaking with a trader, he makes the decision to buy the car. A couple of months pass by and he predicts the dealer and says the cost he is offered is far less than what he was told. He asks for a refund and is told he cannot get a refund because the credit report comprises an error.
The next step is to allow him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he’d done this before employing the credit repair company, he would have managed to generate a formal dispute. If he hadn’t had the aid of the credit repair company, he may have had to attempt to make the dispute himself. By using the services of a credit repair company, you are given the advantage of someone else being able to help you in this aspect of credit repair.