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 be certain that the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the various regions of interest that can be reported, identifying the various mistakes that can be made and learning how to fix credit score errors. One of the best ways to raise your credit score is through Credit Repair.
There are several areas that are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can result in a number of problems, like the inability to get approved for home, automobile and business loans; being diminished for employment; having poor credit report evaluations; not qualifying for insurance; not being able to get certain professional licenses; and a multitude of other issues. By way of instance, 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 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 those mistakes. For instance, the three largest credit repair bureaus in the United States must inform 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 might be taken against them and other important information. One of the biggest issues that consumers face is the failure to correctly understand the Fair Credit Reporting Act and its own 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. As an example, 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 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 appear 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 advertising. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be required to remove inaccurate negative items. 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 this? 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 could issue a letter to the creditor telling them that the information is inaccurate and need to be updated.
This situation plays out over every day. A consumer decides to purchase 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 calls the dealer and says the cost he is offered is far less than what he had been told. He asks for a refund and is told 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 bureau, disputing the errors on his credit report. If he had done this before hiring the credit repair company, he would have been able to make a formal dispute. If he had not had the aid of the credit repair company, he might have had to try 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 part of credit repair.