Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will require regular monitoring and regular reviews to make sure the aims of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different areas of interest that may be reported, identifying the various mistakes that can be made 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 throughout 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, auto and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other problems. By way of example, 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 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 those mistakes. For instance, the three largest credit repair bureaus in america must notify consumers of the differences between debt settlement and bankruptcy in addition to 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 which might be taken against them and other important information. One of the biggest problems that consumers face is the failure to properly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, creditors are prohibited from making false statements regarding a consumer’s credit report. However, it doesn’t matter if these statements are true or not. As an example, 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 bureaus. So, what if a consumer decides to question 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 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 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 customers not to take steps to fix the problem. Why would they do this? 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 before making a determination. Then it could issue a letter to the creditor telling 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 price will be. After speaking with a trader, he decides to buy the car. A couple of months pass by and he calls the dealer and says the cost he’s offered is much less than what he had been 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 agency, disputing the errors on his credit report. If he’d done this before employing the credit repair company, he would have managed to generate a formal dispute. If he hadn’t 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 company, you’re given the advantage of someone else being able to help you in this aspect of credit repair.