Credit Repair is an ongoing process, like the development of any other system. A system that works perfectly will require periodic monitoring and regular reviews 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 areas of interest which may be reported, identifying the numerous mistakes that may be created and learning how to repair credit score errors. Among the best ways to improve your credit score is through 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 can lead to a number of problems, such as the inability to get approved for home, automobile and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a large number of other problems. For 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 national 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 these mistakes. For instance, the three largest credit repair agencies in america must inform 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 failure to properly 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 those 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 this 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 would seem 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 advertisements. Most credit repair services dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be asked to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair services will simply instruct their customers 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 action to investigate before making a determination. Then it could 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 price will be. After speaking with a trader, he decides to buy the car. A couple of months pass by and he calls the dealer and says the cost he’s offered is much less than what he was told. He asks for a refund and is told that he cannot get a refund because the credit report contains an error.
The next step would be to allow him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he had done this before hiring the credit repair company, he would have been able to make a formal dispute. If he hadn’t 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 benefit of someone else being able to help you in this aspect of credit repair.