Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will need periodic monitoring and regular inspections to be certain the aims of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different areas of interest that can be reported, identifying the numerous mistakes that can be made and learning how to repair credit score errors. One of 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 can lead to a number of problems, like the inability to get approved for home, automobile and business loans; being declined for employment; having bad credit report evaluations; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other issues. 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 national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures 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 these mistakes. For instance, the three largest credit repair bureaus in america must notify consumers of the differences between debt settlement and bankruptcy as well as 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 which may be taken against them and other important information. Among the biggest problems that consumers face is the inability to properly 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 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 bureaus. 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 things on a consumer’s credit report. But that would mean the creditor is practicing false advertising. Most credit repair services 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 items. But that will hardly ever occur.
Many credit repair providers will simply instruct their clients not to take action to fix the problem. Why would they do that? If a creditor won’t take action 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 could issue a letter to the creditor telling them that the information is inaccurate and need to be updated.
This scenario plays out over every day. A consumer decides to purchase a car and does a little bit of research to find out what the price will be. After speaking with a dealer, he makes the decision to purchase 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 was 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 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 make a formal dispute. If he had not had the help of the credit repair company, he might 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 help you in this aspect of credit repair.