Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will need regular monitoring and regular inspections to be certain the objectives of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different regions of interest that may be reported, identifying the numerous mistakes which may be created and learning how to repair credit score errors. Among the best ways to raise your credit score is via 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 may lead to a number of problems, like the inability to get 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 get certain professional licenses; and a large number of other problems. By way of example, missing data from a credit report can lower an individual’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 ensure 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 notify 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 that might be taken against them and other important information. One of the biggest problems that consumers face is the inability to correctly 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. But, 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 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 consumer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be required to remove inaccurate negative items. But that will hardly ever occur.
Many credit repair services will simply instruct their clients not to take steps to correct the problem. Why would they do this? 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 action to investigate before 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 daily. A consumer decides to buy a car and does a little bit of research to find out what the price 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 was told. He asks for a refund and is told that 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 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 hadn’t had the aid of the credit repair company, he may have had to attempt to make the dispute himself. By utilizing the services of a credit repair business, you are given the benefit of someone else being able to help you in this aspect of credit repair.