Credit Repair is an ongoing process, similar to the development of any other system. A system that works perfectly will need regular monitoring and regular reviews to be certain the objectives of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different areas of interest that can be reported, identifying the numerous mistakes which may be made 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 generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can lead to quite a few problems, such as the inability to become approved for home, auto and business loans; being diminished for employment; having bad credit report evaluations; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other problems. 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.
When there are no national 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 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. 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 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 failure to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders 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 agencies. So, what if a consumer decides to challenge that negative information? Is it still legally valid?
This is a tricky question. In theory, it might seem that a creditor has every right to include inaccurate negative items on a consumer’s credit report. But that would mean the creditor is practicing false advertising. Most credit repair services dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute badly, the creditor will be required to remove inaccurate negative items. But this will hardly ever happen.
Many credit repair providers will simply instruct their customers not to take action to fix the problem. Why would they do that? 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 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 situation plays out over daily. A consumer decides to purchase a car and does a little bit of research to see what the cost will be. After talking with a trader, he makes the decision to purchase the car. A few months pass by and he predicts the dealer and says the cost he’s offered is much less than what he had been told. He asks for a refund and is told that he can’t 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 employing the credit repair company, he would have managed to make a formal dispute. If he hadn’t had the aid of the credit repair company, he may have had to try to make the dispute himself. By utilizing the services of a credit repair company, you’re given the benefit of someone else being able to help you in this part of credit repair.