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 be certain the objectives of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the various regions of interest which can be reported, identifying the various mistakes which may be made and learning how to repair credit score errors. One of the best ways to raise your credit score is through Credit Repair.
There are numerous areas that are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can result in 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 evaluations; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a multitude of other issues. By way of 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 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. For example, the three largest credit repair bureaus in america must inform 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 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. But, it doesn’t matter if these 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 incorrect 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 consumer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be asked to remove inaccurate negative items. But that will hardly ever happen.
Many credit repair services will simply instruct their customers not to take action 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 prior to 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 cost will be. After talking with a dealer, he makes the decision to buy the car. A few months pass by and he predicts the dealer and says the price 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 is 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 help of the credit repair company, he may have had to try to make the dispute himself. By utilizing the services of a credit repair business, you are given the advantage of someone else being able to assist you in this aspect of credit repair.