Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will require regular monitoring and regular inspections to make sure that the aims of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the various regions of interest which may be reported, identifying the numerous mistakes that may be created and learning how to fix credit score errors. One of the best ways to raise your credit score is via Credit Repair.
There are numerous areas that are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can result in a number of problems, such as 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 obtain certain professional licenses; and a multitude of other problems. For 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 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 those mistakes. For instance, the three largest credit repair agencies in america must notify 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 that may be taken against them and other important information. One of the biggest issues that consumers face is the inability to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. But, it doesn’t matter if those statements are true or not. For instance, 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 of 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 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 services 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 this will hardly ever occur.
Many credit repair services will simply instruct their clients not to take steps 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 choose to investigate the dispute and take steps to investigate prior to 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 scenario plays out over daily. A consumer decides to buy a car and does a little bit of research to find out what the price will be. After talking with a dealer, he makes the decision to purchase the car. A few months pass by and he predicts the dealer and says the price he is offered is much less than what he had been told. He asks for a refund and is told that 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 agency, disputing the errors on his credit report. If he had done this before hiring the credit repair company, he would have managed to generate a formal dispute. If he had not had the help of the credit repair company, he may have had to attempt to make the dispute himself. By utilizing 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.