Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will need 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 different areas of interest that can be reported, identifying the various mistakes which may be made and learning how to fix credit score errors. Among the best ways to raise your credit score is via Credit Repair.
There are several areas that are generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can lead to a number of problems, such as the inability to get approved for home, auto and business loans; being diminished for employment; having poor credit report evaluations; 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 a person’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 steps to make certain 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 these mistakes. By way of instance, the three largest credit repair bureaus 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 might be taken against them and other important information. Among the biggest problems 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 regarding a consumer’s credit report. However, it doesn’t matter if those statements are true or not. As an example, it is perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if this creditor reports that information to all of the credit reporting agencies. So, what if a consumer decides to challenge that negative information? Is it still legally valid?
This is a tricky question. In theory, it would appear that a creditor has every right to include inaccurate negative items 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 consumer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be required to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair services will simply instruct their customers not to take steps to fix the problem. Why would they do this? 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 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 scenario plays out over daily. A consumer decides to purchase a car and does a little bit of research to see what the price will be. After speaking with a dealer, he makes the decision to purchase the car. A few 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 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 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 generate a formal dispute. If he hadn’t had the aid of the credit repair company, he may have had to try to make the dispute himself. By utilizing the services of a credit repair company, you’re given the advantage of someone else being able to help you in this aspect of credit repair.