Credit Repair is an ongoing process, like the growth of any other system. A system that works perfectly will need periodic monitoring and regular reviews to make sure that the aims of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the various areas of interest that may be reported, identifying the various mistakes that may be made and learning how to fix credit score errors. One of the best ways to improve your credit score is via Credit Repair.
There are several areas that are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This can lead to a number of problems, such as the inability to get approved for home, automobile and business loans; being diminished for employment; having bad credit report evaluations; not qualifying for insurance; not being able to get certain professional licenses; and a large number 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.
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 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 these mistakes. By way of 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 which might be taken against them and other important information. Among the biggest issues that consumers face is the inability to properly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, creditors are prohibited from making false statements regarding a consumer’s credit report. But, 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 that 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 might seem that a creditor has every right to include inaccurate 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 agencies take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But that will hardly ever occur.
Many credit repair services will simply instruct their customers not to take steps 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 decide to investigate the dispute and take action 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 scenario plays out over every day. A consumer decides to purchase a car and does a little bit of research to see what the cost will be. After talking with a dealer, he makes the decision to buy the car. A few months pass by and he calls the dealer and says the price he is offered is far less than what he was told. He asks for a refund and is told that he cannot 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 bureau, disputing the errors on his credit report. If he’d done this before hiring the credit repair company, he would have managed to make a formal dispute. If he hadn’t 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 benefit of someone else being able to assist you in this aspect of credit repair.