Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will require 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 different regions of interest that can be reported, identifying the various mistakes that may be made and learning how to repair credit score errors. One of the best ways to improve your credit score is via Credit Repair.
There are several areas which are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This may result in a number of problems, like the inability to become approved for home, auto and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a large number 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 federal 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 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 these mistakes. For instance, the three largest credit repair bureaus in america must inform 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 that may be taken against them and other important information. Among the biggest problems that consumers face is the failure 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. But, it doesn’t matter if these statements are true or not. As an example, it’s 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 bureaus. So, what if a consumer decides to question that negative information? Is it officially valid?
This is a tricky question. In theory, it might seem 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 advertising. Most credit repair services dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be asked 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 fix the problem. Why would they do that? 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 action to investigate before making a determination. Then it could issue a letter to the creditor notifying them that the information is inaccurate and have 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 see what the cost will be. After speaking with a dealer, he decides 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 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 agency, disputing the errors on his credit report. If he’d done this before hiring the credit repair company, he would have been able to make a formal dispute. If he had not 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 business, you are given the benefit of someone else being able to help you in this aspect of credit repair.