Credit Repair is an ongoing process, like the development of any other system. A system that works perfectly will need regular monitoring and regular reviews to make sure that the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the different regions of interest which can be reported, identifying the numerous mistakes which can be made and learning how to repair credit score errors. One of the best ways to improve your credit score is through Credit Repair.
There are numerous areas which are commonly confused during 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 get approved for home, auto and business loans; being declined 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 usual 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 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. 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 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. Among the biggest problems that consumers face is the failure to correctly 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 these 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 that creditor reports that information to all of 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 appear 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 companies 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 items. But that will hardly ever occur.
Many credit repair providers will simply instruct their customers not to take action to correct 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 erroneous information. The credit bureau can choose to investigate the dispute and take action to investigate before making a determination. Then it might 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 see what the cost will be. After speaking with a trader, he makes the decision to buy the car. A couple of months pass by and he calls 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 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 employing the credit repair company, he would have managed to generate 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 using the services of a credit repair business, you are given the benefit of someone else being able to help you in this aspect of credit repair.