Credit Repair is an ongoing process, like the growth of any other system. A system that works perfectly will require regular monitoring and regular reviews to make sure that the aims of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the various areas of interest that can be reported, identifying the various mistakes that can be made and learning how to fix credit score errors. One of the best ways to raise your credit score is through Credit Repair.
There are numerous areas which 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, such as the inability to become approved for home, automobile and business loans; being declined for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a large number of other issues. By way of 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.
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 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 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 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. One of the biggest issues that consumers face is the inability to correctly 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 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 agencies. 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 incorrect negative things on a consumer’s credit report. But that would mean 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 things. But that will hardly ever occur.
Many credit repair services will simply instruct their customers not to take steps to fix 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 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 situation plays out over every day. A consumer decides to purchase a car and does a little bit of research to find out what the cost will be. After speaking with a dealer, he decides to buy the car. A couple of months pass by and he predicts 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 that he can’t get a refund because the credit report contains an error.
The next step would be for him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he had done this before employing the credit repair company, he would have been able to make a formal dispute. If he had not had the help of the credit repair company, he may have had to attempt to make the dispute himself. By using the services of a credit repair business, you are given the benefit of someone else being able to help you in this part of credit repair.