Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will need periodic monitoring and regular inspections to make sure the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the various regions of interest that may be reported, identifying the various mistakes which can be made and learning how to repair credit score errors. Among the best ways to raise 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, such as the inability to get approved for home, automobile and business loans; being declined for employment; having bad credit report evaluations; not qualifying for insurance; not being able to get 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 usual 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 ensure 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. By way of instance, the three largest credit repair bureaus in america must notify consumers of the differences between debt settlement and bankruptcy as well as 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 failure to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. But, it doesn’t matter if these statements are true or not. As an example, it is 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 agencies. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it would seem that a creditor has every right to include inaccurate 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 items. But that will hardly ever happen.
Many credit repair providers will simply instruct their clients not to take steps to fix the problem. Why would they do that? If a creditor won’t take action 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 before 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 scenario plays out over every day. 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 predicts the dealer and says the cost he’s offered is far less than what he was 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’d done this before hiring the credit repair company, he would have been able to make 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’re given the advantage of someone else being able to help you in this part of credit repair.