Credit Repair is an ongoing process, like the development of any other system. A system that works perfectly will need periodic monitoring and regular inspections to make sure the objectives of the system are achieved. The same is true for fixing one’s credit history, including understanding the various areas of interest which may be reported, identifying the various mistakes that may be created and learning how to repair credit score errors. One of the best ways to raise your credit score is via Credit Repair.
There are numerous areas which are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This may lead to quite a few problems, like the inability to become approved for home, automobile and business loans; being declined for employment; having bad credit report ratings; not qualifying for insurance; not being able to get 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 federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to make certain that all customers 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. For example, the three largest credit repair agencies in america must inform 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 issues that consumers face is the failure to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, creditors are prohibited from making false statements regarding a consumer’s credit report. However, it doesn’t matter if these 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 might seem that a creditor has every right to include incorrect negative things 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 consumer’s report. If the credit reporting agencies take the dispute badly, the creditor will be asked to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair providers will simply instruct their clients not to take steps to correct the problem. Why would they do this? 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 decide to investigate the dispute and take steps to investigate before making a determination. Then it could issue a letter to the creditor telling 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 price will be. After speaking with a trader, he makes the decision to purchase 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 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 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 make a formal dispute. If he hadn’t had the help of the credit repair company, he may have had to try to make the dispute himself. By utilizing 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.