Debt reduction programs

Credit Repair is an ongoing process, similar to 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 exact same is true for fixing one’s credit history, including understanding the different areas of interest that may be reported, identifying the numerous mistakes which can be made and learning how to repair credit score errors. One of the best ways to improve your credit score is through Credit Repair.

There are several areas that are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This can result in quite a few problems, such as the inability to get approved for home, automobile and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other issues. For example, 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.

When there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps 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 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 which may be taken against them and other important information. Among the biggest issues 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 about a consumer’s credit report. But, 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 bureaus. 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 seem that a creditor has every right to include incorrect negative things on a consumer’s credit report. But that would mean that the creditor is practicing false advertising. Most credit repair companies 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 things. But that will hardly ever happen.

Many credit repair services will simply instruct their clients not to take action 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 inaccurate information. The credit bureau can choose 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 need to be updated.

This situation plays out over daily. A consumer decides to purchase a car and does a little bit of research to see what the cost will be. After speaking with a trader, he decides to buy the car. A few months pass by and he calls the dealer and says the cost he is 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 comprises an error.

The next step is 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 employing 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 attempt to make the dispute himself. By using the services of a credit repair business, you’re given the benefit of someone else being able to assist you in this aspect of credit repair.