Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will need periodic monitoring and regular reviews to be certain that the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the different regions of interest that can be reported, identifying the various mistakes that can be made and learning how to repair credit score errors. Among the best ways to improve your credit score is via Credit Repair.
There are several areas which are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This may result in quite a few problems, such as the inability to get approved for home, auto and business loans; being declined for employment; having bad credit report evaluations; not qualifying for insurance; not being able to obtain certain professional licenses; and a large number of other problems. For instance, 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.
While 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 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 example, the three largest credit repair agencies in the United States 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 which might be taken against them and other important information. Among the biggest problems that consumers face is the inability to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, creditors are prohibited from making false statements about a consumer’s credit report. However, it doesn’t matter if those 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 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 might 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 advertising. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute badly, the creditor will be asked to remove inaccurate negative things. But this will hardly ever occur.
Many credit repair services will simply instruct their clients not to take steps 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 inaccurate information. The credit bureau can decide to investigate the dispute and take steps to investigate before making a determination. Then it might issue a letter to the creditor notifying them that the information is inaccurate and have to be updated.
This situation plays out over daily. A consumer decides to buy a car and does a little bit of research to find out what the cost 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 price he’s 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 contains an error.
The next step would be 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 hiring the credit repair company, he would have been able to generate a formal dispute. If he had not 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 company, you are given the advantage of someone else being able to help you in this part of credit repair.