Credit Repair is an ongoing process, like the development of any other system. A system that works perfectly will need periodic monitoring and regular reviews to make sure the objectives of the system are achieved. The same is true for fixing one’s credit history, including understanding the different areas of interest which can be reported, identifying the various mistakes that can be created and learning how to repair credit score errors. Among the best ways to raise your credit score is via Credit Repair.
There are several areas which are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This may result in a number of problems, like the inability to get approved for home, automobile and business loans; being declined for employment; having poor credit report evaluations; not qualifying for insurance; not being able to get certain professional licenses; and a multitude of other issues. By way of 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.
When there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to ensure 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 those mistakes. By way of example, the three largest credit repair bureaus in the United States must inform 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 that might be taken against them and other important information. Among the biggest problems that consumers face is the inability to properly 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 that creditor reports that information to all of the credit reporting agencies. So, what if a consumer decides to challenge 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 advertisements. Most credit repair services dispute negative items on a customer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be required to remove inaccurate negative items. But this will hardly ever occur.
Many credit repair providers will simply instruct their clients not to take action 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 inaccurate information. The credit bureau can decide 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 have to be updated.
This scenario plays out over every day. A consumer decides to purchase 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 purchase 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 that he can’t get a refund because the credit report contains 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 had done this before hiring the credit repair company, he would have managed 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 utilizing the services of a credit repair business, you are given the advantage of someone else being able to assist you in this part of credit repair.