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 reviews to be certain the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the different regions of interest which may be reported, identifying the various mistakes that can be created and learning how to fix credit score errors. One of the best ways to raise your credit score is through Credit Repair.
There are several areas that are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This can lead to quite a few problems, like the inability to become approved for home, automobile and business loans; being declined for employment; having bad credit report evaluations; not qualifying for insurance; not having the ability to get certain professional licenses; and a large number of other issues. For instance, missing data from a credit report can lower an individual’s credit score by up to 200 points. The most common cause of this problem is the failure to report accurate information.
When 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 those mistakes. By way of 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 might be taken against them and other important information. One of the biggest problems 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 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 bureaus. So, what if a consumer decides to question that negative information? Is it still legally valid?
This is a tricky question. In theory, it might appear that a creditor has every right to include incorrect 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 agencies take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But that 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 decide to investigate the dispute and take action to investigate before 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 buy a car and does a little bit of research to find out what the cost will be. After speaking with a trader, he makes the decision to purchase the car. A couple of months pass by and he calls the dealer and says the price he’s offered is far 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 for 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 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 utilizing the services of a credit repair business, you are given the benefit of someone else being able to assist you in this part of credit repair.