Credit Repair is an ongoing process, like the development of any other system. A system that works perfectly will need regular monitoring and regular inspections to make sure the objectives of the system are achieved. The same is true for fixing one’s credit history, including understanding the different areas of interest that may be reported, identifying the numerous mistakes which 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 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 get approved for home, auto and business loans; being diminished for employment; having poor credit report evaluations; not qualifying for insurance; not having the ability 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 usual 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 steps to make certain 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 those mistakes. By way of example, the three largest credit repair agencies 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. 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 regarding a consumer’s credit report. However, it doesn’t matter if these 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 the credit reporting agencies. So, what if a consumer decides to question that negative information? Is it officially valid?
This is a tricky question. In theory, it might seem that a creditor has every right to include inaccurate negative items on a consumer’s credit report. But that would mean the creditor is practicing false advertisements. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be required to remove inaccurate negative items. But that will hardly ever occur.
Many credit repair providers will simply instruct their customers 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 action to investigate before making a determination. Then it might issue a letter to the creditor notifying them that the information is inaccurate and need to be updated.
This situation 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 decides to buy the car. A couple of months pass by and he predicts the dealer and says the price he’s offered is much less than what he had been 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 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 hiring 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 try to make the dispute himself. By using the services of a credit repair company, you’re given the advantage of someone else being able to assist you in this aspect of credit repair.