Credit Repair is an ongoing process, like the growth of another 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 repairing one’s credit history, including understanding the various regions of interest which can be reported, identifying the various mistakes which may be created and learning how to fix credit score errors. Among 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 can result in a number of problems, like 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 having the ability to get 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.
When 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 the United States must inform 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 properly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. But, it doesn’t matter if those statements are true or not. For instance, 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 the credit reporting bureaus. So, what if a consumer decides to challenge 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 badly, the creditor will be asked to remove inaccurate negative items. But this 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 erroneous information. The credit bureau can choose to investigate the dispute and take action to investigate prior to making a determination. Then it might issue a letter to the creditor telling them that the information is inaccurate and need 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 price will be. After speaking with a trader, he makes the decision to buy the car. A few 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 he cannot 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 bureau, disputing the errors on his credit report. If he had done this before employing the credit repair company, he would have been able to make 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 utilizing the services of a credit repair company, you are given the advantage of someone else being able to help you in this part of credit repair.