Credit Repair is an ongoing process, like the growth of any other system. A system that works perfectly will need regular monitoring and regular reviews 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 regions of interest that can be reported, identifying the numerous mistakes that can be created 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 which are generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This may lead to a number of problems, such as the inability to get approved for home, auto and business loans; being diminished for employment; having bad credit report evaluations; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a multitude of other issues. For example, 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 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 those mistakes. By way of example, the three largest credit repair agencies in america must inform 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 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. 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 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 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 advertisements. Most credit repair services dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be required to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair services will simply instruct their customers not to take steps to correct 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 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 have 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 decides to buy the car. A couple of months pass by and he predicts 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 that he cannot get a refund because the credit report contains 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 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 utilizing the services of a credit repair business, you’re given the benefit of someone else being able to assist you in this part of credit repair.