Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will need periodic monitoring and regular reviews to make sure the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the various areas of interest which can be reported, identifying the numerous mistakes that can be created and learning how to fix credit score errors. Among the best ways to raise your credit score is through Credit Repair.
There are numerous areas which are generally 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, auto and business loans; being declined for employment; having poor credit report evaluations; not qualifying for insurance; not having the ability to get certain professional licenses; and a large number of other problems. For instance, missing data from a credit report can lower a person’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 federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to ensure that all customers 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 example, the three largest credit repair agencies in america must notify consumers of the differences between debt settlement and bankruptcy as well as 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. One of the biggest problems that consumers face is the inability to correctly understand the Fair Credit Reporting Act and its 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 that creditor reports that information to all of the credit reporting agencies. So, what if a consumer decides to question 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 inaccurate negative items on a consumer’s credit report. But that would mean that the creditor is practicing false advertising. Most credit repair companies dispute negative items on a customer’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 services will simply instruct their customers not to take steps to correct 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 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 have to be updated.
This situation plays out over every day. A consumer decides to buy a car and does a little bit of research to see what the cost will be. After talking with a trader, he decides to purchase the car. A few months pass by and he calls the dealer and says the price he’s offered is much 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 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 make a formal dispute. If he hadn’t had the aid of the credit repair company, he might have had to attempt to make the dispute himself. By utilizing the services of a credit repair company, you are given the benefit of someone else being able to help you in this aspect of credit repair.