Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will require regular monitoring and regular reviews to make sure that the aims of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the various regions of interest which can be reported, identifying the various mistakes that can be made and learning how to repair credit score errors. Among the best ways to raise your credit score is through Credit Repair.
There are several areas which are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This may lead to quite a few problems, such as the inability to become approved for home, auto and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not having the ability 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 national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to ensure 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. 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 in addition to 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 might be taken against them and other important information. One of the biggest problems that consumers face is the failure to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements regarding a consumer’s credit report. However, it doesn’t matter if those statements are true or not. As an example, 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 agencies. 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 appear 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 advertising. Most credit repair companies dispute negative items on a customer’s report. If the credit reporting agencies take the dispute badly, the creditor will be required to remove inaccurate negative items. But that will hardly ever happen.
Many credit repair providers will simply instruct their customers not to take steps to correct the problem. Why would they do this? If a creditor won’t 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 action to investigate before making a determination. Then it might issue a letter to the creditor notifying them that the information is inaccurate and have to be updated.
This scenario 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 buy the car. A couple of months pass by and he calls the dealer and says the price he is offered is far less than what he had been 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 for him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he’d done this before hiring 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 using the services of a credit repair business, you are given the advantage of someone else being able to help you in this aspect of credit repair.