Credit Repair is an ongoing process, like the growth of any other system. A system that works perfectly will require regular monitoring and regular inspections to make sure that the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the various regions of interest that may be reported, identifying the various mistakes that may be created and learning how to repair credit score errors. Among the best ways to improve 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 can result in a number of problems, such as the inability to become approved for home, auto and business loans; being declined for employment; having bad credit report evaluations; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other issues. By way of 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 federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to ensure that all customers have access to accurate and fair 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 agencies 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 issues that consumers face is the inability to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, creditors are prohibited from making false statements about a consumer’s credit report. However, 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 this creditor reports that information to all the credit reporting agencies. So, what if a consumer decides to question that negative information? Is it officially valid?
This is a tricky question. In theory, it would seem that a creditor has every right to include inaccurate negative things on a consumer’s credit report. But that would mean the creditor is practicing false advertisements. Most credit repair companies dispute negative items on a consumer’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 providers will simply instruct their clients not to take action to fix the problem. Why would they do this? If a creditor refuses to 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 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 decides to purchase the car. A couple of months pass by and he calls the dealer and says the price he is offered is much less than what he had been told. He asks for a refund and is told he cannot 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 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 may have had to try to make the dispute himself. By utilizing 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.