Credit Repair is an ongoing process, similar to the growth of another system. A system that works perfectly will require periodic monitoring and regular inspections to make sure that the objectives of the system are achieved. The exact same is true for fixing 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 fix credit score errors. One of the best ways to raise your credit score is via Credit Repair.
There are several areas that are commonly confused during 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 having the ability to get certain professional licenses; and a multitude of other problems. For 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 federal 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 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 those mistakes. By way of example, the three largest credit repair bureaus 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 which may be taken against them and other important information. Among the biggest problems that consumers face is the failure to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements regarding a consumer’s credit report. However, it doesn’t matter if these 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 that creditor reports that information to all of 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 things on a consumer’s credit report. But that would mean that the creditor is practicing false advertising. Most credit repair services dispute negative items on a consumer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But this will hardly ever occur.
Many credit repair providers will simply instruct their customers not to take steps to correct 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 notifying them that the information is inaccurate and have to be updated.
This situation plays out over daily. A consumer decides to buy a car and does a little bit of research to see what the cost will be. After speaking with a trader, he makes the decision to buy the car. A few months pass by and he predicts the dealer and says the price he’s offered is much 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 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 generate a formal dispute. If he had not had the help 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 part of credit repair.