Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will require regular monitoring and regular reviews to be certain the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the different areas of interest which may be reported, identifying the various mistakes which may be made and learning how to fix credit score errors. Among the best ways to improve your credit score is via Credit Repair.
There are several areas which are generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This may lead to a number of problems, such as the inability to become approved for home, auto and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not being able to get certain professional licenses; and a multitude of other problems. 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.
While there are no federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to ensure that all consumers 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 those mistakes. For instance, the three largest credit repair bureaus in america must notify 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 that may be taken against them and other important information. One of the biggest issues that consumers face is the failure to properly understand the Fair Credit Reporting Act and its own 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. 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 the credit reporting agencies. 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 incorrect negative things on a consumer’s credit report. But that would mean the creditor is practicing false advertisements. Most credit repair services dispute negative items on a consumer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be required to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair services will simply instruct their clients not to take action 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 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 scenario plays out over daily. A consumer decides to purchase 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 predicts the dealer and says the cost he is offered is far less than what he had been 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 would be to allow him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he had done this before hiring the credit repair company, he would have managed to generate a formal dispute. If he had not had the help of the credit repair company, he may have had to attempt 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 help you in this part of credit repair.