Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will need periodic monitoring and regular inspections to be certain the aims of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the various areas of interest that can be reported, identifying the various 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 several areas which are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can result in quite a few problems, like the inability to get approved for home, automobile and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a large number of other problems. For example, 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 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. By way of instance, the three largest credit repair bureaus in the United States must inform 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 might 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 rights.
Under FCRA, creditors are prohibited from making false statements regarding a consumer’s credit report. But, 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 this 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 would appear that a creditor has every right to include incorrect negative things on a consumer’s credit report. But that would mean that the creditor is practicing false advertisements. Most credit repair services dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute seriously, 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 action to correct the problem. Why would they do that? If a creditor refuses to take action 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 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 scenario plays out over every day. A consumer decides to buy 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 purchase the car. A couple of months pass by and he predicts the dealer and says the cost he’s offered is far less than what he was told. He asks for a refund and is told that he can’t get a refund because the credit report comprises an error.
The next step would be to allow 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 managed to make a formal dispute. If he hadn’t had the aid of the credit repair company, he may have had to attempt to make the dispute himself. By using the services of a credit repair company, you are given the advantage of someone else being able to help you in this part of credit repair.