Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will require regular monitoring and regular reviews to be certain that the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the different regions of interest that may be reported, identifying the numerous mistakes which can be made and learning how to fix credit score errors. One of the best ways to raise your credit score is through Credit Repair.
There are numerous 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, auto 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 large number of other issues. For instance, missing data from a credit report can lower a person’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 federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps 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 the United States 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 that might 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’s 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 question that negative information? Is it officially valid?
This is a tricky question. In theory, it would seem 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 consumer’s report. If the credit reporting agencies take the dispute seriously, 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 fix 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 erroneous information. The credit bureau can decide to investigate the dispute and take steps to investigate prior to 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 situation plays out over every day. A consumer decides to buy 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 couple of months pass by and he predicts the dealer and says the price he is offered is much less than what he had been told. He asks for a refund and is told he cannot get a refund because the credit report comprises an error.
The next step would be to allow 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 managed to generate a formal dispute. If he hadn’t 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 are given the advantage of someone else being able to assist you in this aspect of credit repair.