Credit Repair is an ongoing process, like the growth of any other system. A system that works perfectly will require regular monitoring and regular inspections to make sure the objectives of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the various regions of interest that can be reported, identifying the numerous mistakes which may be made and learning how to fix credit score errors. Among the best ways to improve 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 may lead to quite a few problems, like the inability to become approved for home, auto and business loans; being diminished 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 usual cause of this problem is the failure to report accurate information.
When there are no federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to ensure that all customers 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 example, the three largest credit repair bureaus in america 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 may be taken against them and other important information. Among the biggest issues that consumers face is the failure to correctly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. However, it doesn’t matter if these statements are true or not. For instance, it is perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if that creditor reports that information to all the credit reporting bureaus. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it might 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 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 items. But that will hardly ever occur.
Many credit repair services will simply instruct their clients not to take steps 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 telling them that the information is inaccurate and need to be updated.
This situation plays out over daily. A consumer decides to purchase a car and does a little bit of research to find out what the cost will be. After talking with a dealer, he makes the decision to purchase the car. A couple of months pass by and he calls the dealer and says the price he is offered is much less than what he was told. He asks for a refund and is told he cannot get a refund because the credit report comprises an error.
The next step is to allow 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 make a formal dispute. If he had not had the aid 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 benefit of someone else being able to help you in this aspect of credit repair.