Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will require regular monitoring and regular inspections to make sure 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 which may be reported, identifying the numerous mistakes which can be made and learning how to fix credit score errors. One of the best ways to improve your credit score is through Credit Repair.
There are numerous areas that are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This may lead to a number of problems, such as the inability to get 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 obtain 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 usual 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 measures to ensure 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. For instance, the three largest credit repair bureaus in the United States must notify 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 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. 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 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 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 advertisements. Most credit repair services dispute negative items on a customer’s report. If the credit reporting agencies take the dispute badly, the creditor will be asked to remove inaccurate negative things. But that will hardly ever occur.
Many credit repair providers will simply instruct their clients not to take action 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 inaccurate information. The credit bureau can choose to investigate the dispute and take action to investigate prior to making a determination. Then it could 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 purchase a car and does a little bit of research to find out what the price will be. After speaking with a trader, he decides to purchase the car. A couple of months pass by and he calls the dealer and says the price he is offered is much less than what he was told. He asks for a refund and is told he cannot get a refund because the credit report comprises 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 managed to make a formal dispute. If he hadn’t 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 business, you are given the advantage of someone else being able to assist you in this aspect of credit repair.