Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will require periodic monitoring and regular reviews to make sure the aims of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the different regions of interest that can be reported, identifying the numerous mistakes which may be made and learning how to fix credit score errors. Among the best ways to improve your credit score is via Credit Repair.
There are numerous areas which are commonly confused throughout 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, automobile and business loans; being declined 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 most common cause of this problem is the failure to report accurate information.
While there are no federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to make certain 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 those mistakes. By way of instance, the three largest credit repair bureaus in america must inform 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 issues that consumers face is the failure to properly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, lenders are prohibited from making false statements regarding a consumer’s credit report. But, it doesn’t matter if those statements are true or not. For instance, it’s perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if this creditor reports that information to all of the credit reporting bureaus. 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 incorrect 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 consumer’s report. If the credit reporting agencies 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 steps to fix the problem. Why would they do that? If a creditor refuses to take action 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 have to be updated.
This scenario 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 speaking with a trader, he makes the decision to purchase the car. A few months pass by and he predicts 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 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 agency, 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 had not had the aid 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 assist you in this part of credit repair.