Credit Repair is an ongoing process, like the growth of any other system. A system that works perfectly will require regular monitoring and regular inspections to be certain that the objectives of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the different regions of interest that may be reported, identifying the various mistakes which can be made and learning how to fix credit score errors. Among the best ways to raise your credit score is via Credit Repair.
There are numerous areas which are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This may result in quite a few problems, such as the inability to get approved for home, automobile and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not being able to obtain certain professional licenses; and a large number 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 ensure that all customers 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. By way of example, the three largest credit repair agencies in the United States must notify consumers of the differences between debt settlement and bankruptcy as well as 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. One of the biggest issues that consumers face is the inability to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements regarding a consumer’s credit report. But, it doesn’t matter if those statements are true or not. For instance, 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 question that negative information? Is it still legally valid?
This is a tricky question. In theory, it would seem that a creditor has every right to include incorrect negative things on a consumer’s credit report. But that would mean that 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 that will hardly ever occur.
Many credit repair services will simply instruct their clients 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 choose to investigate the dispute and take steps to investigate before making a determination. Then it might issue a letter to the creditor telling them that the information is inaccurate and have 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 dealer, he decides to purchase 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 that he cannot get a refund because the credit report contains an error.
The next step would be 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 hiring the credit repair company, he would have been able 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 utilizing the services of a credit repair company, you’re given the benefit of someone else being able to help you in this part of credit repair.