Credit Repair is an ongoing process, like the growth of any other 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 fixing one’s credit history, including understanding the different regions of interest which can be reported, identifying the various mistakes that can be created and learning how to fix credit score errors. One of the best ways to raise your credit score is via Credit Repair.
There are numerous areas that are generally 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 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 most common 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 instance, the three largest credit repair agencies in america must notify consumers of the differences between debt settlement and bankruptcy as well as 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 inability to properly 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. For instance, it is 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 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 incorrect negative items on a consumer’s credit report. But that would mean the creditor is practicing false advertisements. 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 required to remove inaccurate negative items. But this will hardly ever happen.
Many credit repair providers will simply instruct their clients not to take action to fix the problem. Why would they do this? If a creditor won’t take action to correct inaccurate information, the credit bureau is under no obligation to remove erroneous information. The credit bureau can decide 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 scenario 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 talking 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’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 is for him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he’d done this before employing 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’re given the advantage of someone else being able to help you in this part of credit repair.