Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will need periodic monitoring and regular reviews to be certain the objectives of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the various regions of interest that may be reported, identifying the various mistakes that may be created and learning how to fix credit score errors. Among the best ways to improve your credit score is via 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 may result in quite a few 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 issues. By way of instance, missing data from a credit report can lower an individual’s credit score by up to 200 points. The usual 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 steps to ensure 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 those mistakes. By way of instance, the three largest credit repair agencies in the United States 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 that might 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. However, it doesn’t matter if those statements are true or not. For instance, it’s 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 challenge that negative information? Is it still legally valid?
This is a tricky question. In theory, it would seem that a creditor has every right to include incorrect negative items on a consumer’s credit report. But that would mean that the creditor is practicing false advertising. Most credit repair services dispute negative items on a customer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be required to remove inaccurate negative items. But that will hardly ever occur.
Many credit repair services will simply instruct their customers not to take action to fix the problem. Why would they do that? 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 steps to investigate prior to making a determination. Then it might issue a letter to the creditor notifying them that the information is inaccurate and have to be updated.
This scenario plays out over daily. A consumer decides to purchase a car and does a little bit of research to see what the price will be. After talking with a dealer, he makes the decision to buy the car. A few months pass by and he calls the dealer and says the cost he is offered is much less than what he had been told. He asks for a refund and is told that he cannot 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 employing the credit repair company, he would have managed to generate a formal dispute. If he hadn’t had the aid of the credit repair company, he might have had to try to make the dispute himself. By using the services of a credit repair company, you’re given the benefit of someone else being able to assist you in this aspect of credit repair.