Credit Repair is an ongoing process, like the development of any other 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 repairing one’s credit history, including understanding the various areas of interest that may be reported, identifying the numerous mistakes which may be made and learning how to fix credit score errors. Among the best ways to raise your credit score is via 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 quite a few problems, like the inability to become approved for home, automobile and business loans; being declined 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 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 national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures 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 these 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 may be taken against them and other important information. One of the biggest issues that consumers face is the inability to correctly 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 these 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 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 bureaus take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But that will hardly ever happen.
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 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 action to investigate before 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 buy a car and does a little bit of research to see what the cost 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 much less than what he was told. He asks for a refund and is told that he cannot get a refund because the credit report contains 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’d 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 utilizing the services of a credit repair business, you’re given the advantage of someone else being able to assist you in this aspect of credit repair.