Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will require regular monitoring and regular reviews to be certain that the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the various regions of interest that may be reported, identifying the numerous mistakes that can be made and learning how to repair 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 may lead to a number of problems, such as the inability to become approved for home, automobile and business loans; being diminished 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 issues. 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 national 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 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. 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. However, it doesn’t matter if those 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 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 inaccurate negative things on a consumer’s credit report. But that would mean the creditor is practicing false advertising. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute badly, the creditor will be asked to remove inaccurate negative things. But this will hardly ever occur.
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 won’t take action to correct inaccurate information, the credit bureau is under no obligation to remove inaccurate information. The credit bureau can decide to investigate the dispute and take steps to investigate prior to 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 scenario 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 talking with a trader, he decides to purchase the car. A few months pass by and he calls the dealer and says the cost he’s offered is much less than what he had been told. He asks for a refund and is told that he cannot get a refund because the credit report comprises an error.
The next step would be for him to send a letter to the credit reporting bureau, 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 help 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 are given the advantage of someone else being able to assist you in this part of credit repair.