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 make sure 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 which can be reported, identifying the numerous mistakes which 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 that are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This may result in a number of problems, such as the inability to get approved for home, auto and business loans; being declined for employment; having bad credit report ratings; not qualifying for insurance; not being able to get certain professional licenses; and a large number of other issues. By way of example, 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.
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 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. By way of instance, the three largest credit repair bureaus in america must inform consumers of the differences between debt settlement and bankruptcy in addition to 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 which 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 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 agencies. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it would seem 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 advertisements. Most credit repair companies dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be required to remove inaccurate negative items. But that will hardly ever happen.
Many credit repair providers will simply instruct their customers not to take action to fix 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 action to investigate prior to making a determination. Then it could issue a letter to the creditor notifying them that the information is inaccurate and need to be updated.
This scenario plays out over daily. A consumer decides to purchase a car and does a little bit of research to find out 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 far less than what he was told. He asks for a refund and is told he can’t get a refund because the credit report contains 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’d done this before hiring the credit repair company, he would have managed to generate a formal dispute. If he hadn’t had the help of the credit repair company, he might 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 assist you in this aspect of credit repair.