Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will need periodic monitoring and regular inspections to make sure that the aims of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different regions of interest that may be reported, identifying the numerous mistakes that may be created 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 which are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This may lead to quite a few problems, like 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 get certain professional licenses; and a large number of other problems. By way of 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 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 these mistakes. By way of example, the three largest credit repair agencies in america 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 may be taken against them and other important information. Among the biggest problems that consumers face is the inability to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, creditors are prohibited from making false statements about a consumer’s credit report. But, 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 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 seem 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 advertising. Most credit repair companies dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be required to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair providers will simply instruct their customers not to take steps to fix 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 erroneous information. The credit bureau can decide to investigate the dispute and take action to investigate prior to making a determination. Then it might issue a letter to the creditor notifying them that the information is inaccurate and need to be updated.
This situation 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 speaking with a dealer, he decides to buy the car. A few 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 can’t get a refund because the credit report contains 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 generate a formal dispute. If he had not had the help of the credit repair company, he might have had to try to make the dispute himself. By using 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.