Credit Repair is an ongoing process, similar to the growth of another 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 areas of interest that can be reported, identifying the various mistakes that can 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 numerous areas that are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can lead to quite a few problems, such as the inability to become approved for home, auto and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not being able to get certain professional licenses; and a large number of other issues. 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.
When there are no federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to make certain 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. For example, the three largest credit repair bureaus in america 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 which may be taken against them and other important information. One of the biggest issues that consumers face is the inability to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. But, 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 still legally 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 advertisements. Most credit repair companies dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be asked to remove inaccurate negative things. But that will hardly ever happen.
Many credit repair providers will simply instruct their clients not to take steps to fix the problem. Why would they do this? If a creditor won’t take steps 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 action to investigate prior to making a determination. Then it could issue a letter to the creditor telling them that the information is inaccurate and have to be updated.
This situation plays out over every day. A consumer decides to buy a car and does a little bit of research to find out what the cost will be. After speaking with a dealer, he makes the decision to buy the car. A couple of months pass by and he calls the dealer and says the cost he is offered is far 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’d done this before employing the credit repair company, he would have been able 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 help you in this part of credit repair.