Credit Repair is an ongoing process, similar to the growth of another system. A system that works perfectly will need periodic monitoring and regular inspections to be certain that the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the different areas of interest which can be reported, identifying the numerous mistakes that can be made and learning how to fix credit score errors. Among the best ways to raise your credit score is through Credit Repair.
There are several areas which are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This can lead to a number of problems, like 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 having the ability to get 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 most common cause of this problem is the failure to report accurate information.
When 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 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 agencies in america 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 might be taken against them and other important information. Among the biggest problems that consumers face is the failure to correctly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, lenders are prohibited from making false statements regarding a consumer’s credit report. But, 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 this creditor reports that information to all of the credit reporting bureaus. So, what if a consumer decides to question 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 things on a consumer’s credit report. But that would mean that the creditor is practicing false advertisements. Most credit repair services dispute negative items on a customer’s report. If the credit reporting agencies take the dispute badly, the creditor will be required to remove inaccurate negative things. But this will hardly ever happen.
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 inaccurate information. The credit bureau can decide to investigate the dispute and take steps to investigate prior to making a determination. Then it could issue a letter to the creditor notifying them that the information is inaccurate and have to be updated.
This situation plays out over every day. A consumer decides to purchase a car and does a little bit of research to find out what the price will be. After talking with a dealer, he makes the decision to purchase the car. A few months pass by and he calls the dealer and says the cost he is offered is far less than what he was told. He asks for a refund and is told that he can’t get a refund because the credit report comprises an error.
The next step would be for 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 been able to generate a formal dispute. If he hadn’t had the help of the credit repair company, he may have had to try to make the dispute himself. By using the services of a credit repair company, you’re given the advantage of someone else being able to assist you in this part of credit repair.