Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will need periodic monitoring and regular inspections to make sure the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the different regions of interest that may be reported, identifying the various mistakes which can be created and learning how to fix credit score errors. One of the best ways to improve your credit score is through 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 result in quite a few problems, like the inability to get approved for home, automobile and business loans; being diminished for employment; having bad credit report evaluations; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude 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.
When 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 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. For instance, the three largest credit repair bureaus in america must notify consumers of the differences between debt settlement and bankruptcy in addition to 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 which might be taken against them and other important information. Among the biggest issues that consumers face is the inability to correctly 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. However, it doesn’t matter if those 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 this creditor reports that information to all the credit reporting agencies. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it might appear 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 advertising. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But this will hardly ever occur.
Many credit repair providers will simply instruct their customers not to take action to correct the problem. Why would they do this? If a creditor refuses to take steps to correct inaccurate information, the credit bureau is under no obligation to remove erroneous information. The credit bureau can decide 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 situation plays out over every day. A consumer decides to purchase a car and does a little bit of research to see what the cost will be. After speaking with a trader, he makes the decision to buy the car. A few months pass by and he predicts the dealer and says the cost he is offered is far less than what he was told. He asks for a refund and is told that he can’t get a refund because the credit report contains an error.
The next step is 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 managed to generate a formal dispute. If he hadn’t had the aid of the credit repair company, he might have had to attempt to make the dispute himself. By using the services of a credit repair business, you’re given the benefit of someone else being able to assist you in this aspect of credit repair.