Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will need periodic monitoring and regular reviews to make sure the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the different regions of interest which may be reported, identifying the numerous mistakes that can be created and learning how to fix credit score errors. Among the best ways to improve your credit score is through Credit Repair.
There are numerous areas that are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This can lead to quite a few problems, like the inability to get approved for home, automobile 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 multitude of other issues. By way of 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.
While there are no national 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. For example, 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 may be taken against them and other important information. Among the biggest issues 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 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 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 incorrect negative things on a consumer’s credit report. But that would mean that the creditor is practicing false advertising. Most credit repair services dispute negative items on a consumer’s report. If the credit reporting bureaus 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 correct 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 erroneous information. The credit bureau can choose 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 need to be updated.
This scenario plays out over every day. A consumer decides to buy a car and does a little bit of research to see what the price will be. After talking with a dealer, he decides to buy the car. A few months pass by and he predicts the dealer and says the price he’s 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 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 hiring the credit repair company, he would have been able to make 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 using the services of a credit repair company, you are given the benefit of someone else being able to assist you in this aspect of credit repair.