Credit Repair is an ongoing process, similar to the development of another system. A system that works perfectly will need periodic monitoring and regular inspections to be certain that the aims of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different regions of interest that may be reported, identifying the numerous mistakes that may be created and learning how to fix credit score errors. One of the best ways to improve your credit score is through Credit Repair.
There are numerous areas that are generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can result in quite a few problems, like the inability to become approved for home, auto and business loans; being declined for employment; having poor 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 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 accurate and fair 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 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 which may be taken against them and other important information. One of the biggest problems that consumers face is the failure to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements regarding a consumer’s credit report. But, 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 would seem that a creditor has every right to include incorrect 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 bureaus take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But that will hardly ever occur.
Many credit repair services will simply instruct their clients not to take steps to fix the problem. Why would they do that? If a creditor refuses to 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 action to investigate before making a determination. Then it could issue a letter to the creditor notifying them that the information is inaccurate and need to be updated.
This situation plays out over daily. A consumer decides to purchase a car and does a little bit of research to find out what the cost will be. After talking with a trader, he makes the decision to purchase the car. A couple of months pass by and he calls the dealer and says the cost he’s offered is much 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 would be to allow him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he’d done this before hiring the credit repair company, he would have managed 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 using the services of a credit repair company, you are given the benefit of someone else being able to help you in this aspect of credit repair.