Credit Repair is an ongoing process, similar to the growth of another system. A system that works perfectly will require periodic monitoring and regular inspections to be certain that the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the various regions of interest that can 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 during the credit repair process, the first of which is inaccurate or incomplete information. This can lead to a number of problems, like the inability to become approved for home, automobile and business loans; being declined 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 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 consumers 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 bureaus in the United States 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 that might be taken against them and other important information. Among the biggest problems 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 regarding a consumer’s credit report. However, 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 agencies. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it might appear that a creditor has every right to include inaccurate 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 agencies take the dispute badly, the creditor will be asked to remove inaccurate negative things. But this will hardly ever occur.
Many credit repair providers will simply instruct their clients 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 choose 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 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 see what the price will be. After speaking with a dealer, he makes the decision to purchase the car. A few months pass by and he calls the dealer and says the price he is offered is far 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 for him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he had done this before hiring the credit repair company, he would have been able to generate a formal dispute. If he had not had the help 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 advantage of someone else being able to assist you in this aspect of credit repair.