Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will need regular monitoring and regular inspections to be certain that the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the various regions of interest that may be reported, identifying the numerous mistakes that can be made 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 generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This may lead to a number of problems, such as the inability to become approved for home, auto 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 large number of other issues. By way of 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 ensure that all customers 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 agencies 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 that might be taken against them and other important information. One of the biggest problems 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. But, it doesn’t matter if these 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 bureaus. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it would appear 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 agencies take the dispute badly, the creditor will be required to remove inaccurate negative things. But that will hardly ever occur.
Many credit repair providers will simply instruct their customers not to take action to fix the problem. Why would they do this? If a creditor refuses to take action to correct inaccurate information, the credit bureau is under no obligation to remove inaccurate information. The credit bureau can decide to investigate the dispute and take steps to investigate before making a determination. Then it could 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 speaking with a dealer, he decides to buy the car. A few months pass by and he predicts the dealer and says the price he’s offered is far 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 is to allow 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 been able to make a formal dispute. If he hadn’t had the help of the credit repair company, he may have had to try 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 part of credit repair.