Credit Repair is an ongoing process, like the growth of any other system. A system that works perfectly will require regular monitoring and regular inspections to make sure the aims of the system are achieved. The exact same is true for fixing one’s credit history, including understanding the various areas of interest which may be reported, identifying the various mistakes that may be made and learning how to fix credit score errors. One of the best ways to improve your credit score is via Credit Repair.
There are numerous areas that are commonly confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This may result in a number of problems, like the inability to get approved for home, automobile 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. For instance, missing data from a credit report can lower an individual’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 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 those 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 that might be taken against them and other important information. Among the biggest issues that consumers face is the inability 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. However, 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 would appear that a creditor has every right to include inaccurate 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 customer’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 won’t take steps to correct inaccurate information, the credit bureau is under no obligation to remove inaccurate information. The credit bureau can choose to investigate the dispute and take steps to investigate prior to making a determination. Then it could 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 decides to buy the car. A couple of months pass by and he calls the dealer and says the cost he is offered is much less than what he had been told. He asks for a refund and is told that he cannot 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’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 try 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 part of credit repair.