Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will need regular monitoring and regular inspections to make sure the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the various areas of interest that may be reported, identifying the various mistakes that can 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 several areas which are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This may result in a number of problems, like the inability to become approved for home, auto and business loans; being diminished for employment; having poor credit report evaluations; not qualifying for insurance; not being able to get certain professional licenses; and a multitude of other issues. For instance, missing data from a credit report can lower a person’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 national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures 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 instance, 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 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 properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements about 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 this creditor reports that information to all 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 appear that a creditor has every right to include incorrect negative items on a consumer’s credit report. But that would mean that 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 asked to remove inaccurate negative items. But this will hardly ever occur.
Many credit repair providers will simply instruct their clients not to take action to fix 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 decide to investigate the dispute and take steps to investigate before making a determination. Then it might issue a letter to the creditor telling 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 dealer, he makes the decision to purchase the car. A couple of months pass by and he calls the dealer and says the cost he is offered is much less than what he was told. He asks for a refund and is told he cannot get a refund because the credit report contains an error.
The next step would be for him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he had 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 attempt to make the dispute himself. By using the services of a credit repair company, you’re given the benefit of someone else being able to help you in this aspect of credit repair.