Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will need periodic monitoring and regular reviews to be certain that the objectives of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the different regions of interest which may be reported, identifying the various mistakes that may be made and learning how to repair credit score errors. Among the best ways to raise your credit score is via Credit Repair.
There are numerous areas that are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This can lead to quite a few problems, like the inability to become approved for home, automobile and business loans; being diminished for employment; having bad credit report ratings; 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 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 these mistakes. By way of example, the three largest credit repair bureaus in the United States must inform consumers of the differences between debt settlement and bankruptcy in addition to 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 which might be taken against them and other important information. Among the biggest problems that consumers face is the inability to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, creditors are prohibited from making false statements regarding 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 the credit reporting agencies. So, what if a consumer decides to question 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 incorrect 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 clients not to take action to fix the problem. Why would they do this? If a creditor won’t take action 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 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 situation plays out over daily. A consumer decides to buy 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 predicts the dealer and says the price he’s offered is far less than what he was told. He asks for a refund and is told he can’t 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 bureau, disputing the errors on his credit report. If he’d done this before employing the credit repair company, he would have been able to generate a formal dispute. If he hadn’t had the help of the credit repair company, he might have had to try to make the dispute himself. By utilizing the services of a credit repair business, you’re given the advantage of someone else being able to assist you in this part of credit repair.