Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will require periodic monitoring and regular reviews to be certain the aims of the system are achieved. The 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 repair credit score errors. One of the best ways to improve your credit score is via 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 lead to quite a few problems, like the inability to get approved for home, auto and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not being able to get certain professional licenses; and a large number of other problems. 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 measures to ensure 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. By way of instance, the three largest credit repair bureaus in the United States must inform 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 might 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 own rights.
Under FCRA, creditors are prohibited from making false statements about 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 appear that a creditor has every right to include incorrect 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 customer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be asked to remove inaccurate negative things. But that will hardly ever happen.
Many credit repair providers will simply instruct their clients not to take steps to correct the problem. Why would they do that? If a creditor refuses to take action 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 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 cost will be. After speaking with a trader, he makes the decision to buy the car. A couple of months pass by and he predicts the dealer and says the price he’s offered is far 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 is for him to send a letter to the credit reporting agency, 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 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 benefit of someone else being able to assist you in this aspect of credit repair.