Credit Repair is an ongoing process, like the growth of any other system. A system that works perfectly will need regular monitoring and regular reviews to make sure that the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the various regions of interest that may be reported, identifying the numerous mistakes which may be created and learning how to fix credit score errors. Among the best ways to improve your credit score is via 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 may result in quite a few problems, such as the inability to get approved for home, auto and business loans; being declined 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 instance, 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 national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to ensure 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. For instance, the three largest credit repair agencies in america must inform consumers of the differences between debt settlement and bankruptcy in addition to 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 might be taken against them and other important information. Among the biggest problems that consumers face is the failure to properly 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 is perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if this creditor reports that information to all 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 might seem 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 agencies take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair services will simply instruct their customers not to take steps to correct 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 action to investigate prior to 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 scenario plays out over daily. A consumer decides to buy 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 calls the dealer and says the cost he’s offered is far less than what he was 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 for him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he’d done this before employing the credit repair company, he would have been able to make a formal dispute. If he hadn’t had the aid of the credit repair company, he may have had to attempt to make the dispute himself. By utilizing the services of a credit repair business, you’re given the benefit of someone else being able to assist you in this part of credit repair.