Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will require periodic 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 different regions of interest which may be reported, identifying the numerous mistakes which may be created and learning how to repair credit score errors. One of the best ways to raise your credit score is via Credit Repair.
There are several areas that are commonly confused throughout 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, automobile and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other issues. By way of example, 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 measures 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 those mistakes. By way of instance, the three largest credit repair bureaus in the United States 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 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. But, it doesn’t matter if those statements are true or not. For instance, 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 bureaus. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it would appear that a creditor has every right to include inaccurate 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 consumer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But that will hardly ever occur.
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 action to correct inaccurate information, the credit bureau is under no obligation to remove erroneous 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 scenario plays out over daily. A consumer decides to purchase a car and does a little bit of research to see what the price will be. After talking with a trader, he makes the decision to buy the car. A couple of months pass by and he calls 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 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 had 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 utilizing the services of a credit repair company, you’re given the advantage of someone else being able to help you in this aspect of credit repair.