Credit Repair is an ongoing process, like the development of any other system. A system that works perfectly will require regular monitoring and regular inspections to be certain that the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the various areas of interest that can be reported, identifying the various mistakes that can be created and learning how to repair credit score errors. One of the best ways to improve your credit score is through Credit Repair.
There are numerous areas that are generally confused throughout 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 become approved for home, auto and business loans; being declined for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a large number 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 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. For instance, 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 choices 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 correctly understand the Fair Credit Reporting Act and its 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. 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 agencies. So, what if a consumer decides to question that negative information? Is it still legally valid?
This is a tricky question. In theory, it would appear that a creditor has every right to include incorrect negative items on a consumer’s credit report. But that would mean the creditor is practicing false advertising. 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 asked 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 that? If a creditor won’t take action 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 steps to investigate prior to making a determination. Then it could issue a letter to the creditor telling them that the information is inaccurate and have to be updated.
This situation plays out over daily. A consumer decides to buy a car and does a little bit of research to find out what the cost will be. After talking with a trader, he makes the decision to purchase the car. A couple of months pass by and he calls the dealer and says the cost he is offered is much less than what he was told. He asks for a refund and is told he can’t get a refund because the credit report comprises an error.
The next step is for him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he’d done this before employing the credit repair company, he would have been able to make a formal dispute. If he hadn’t had the aid of the credit repair company, he might have had to attempt to make the dispute himself. By using the services of a credit repair company, you’re given the benefit of someone else being able to assist you in this part of credit repair.