Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will need periodic monitoring and regular reviews to be certain the objectives of the system are achieved. The same is true for repairing one’s credit history, including understanding the different regions of interest which may be reported, identifying the various mistakes which may be made and learning how to repair credit score errors. Among the best ways to improve your credit score is via Credit Repair.
There are numerous areas that are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This may lead to a number of problems, like the inability to get approved for home, automobile and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not being able to obtain certain professional licenses; and a large number of other problems. For 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.
While there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures 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 instance, the three largest credit repair bureaus in the United States must notify consumers of the differences between debt settlement and bankruptcy in addition to 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 issues that consumers face is the inability to correctly understand the Fair Credit Reporting Act and its own 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. 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 bureaus. So, what if a consumer decides to question that negative information? Is it officially valid?
This is a tricky question. In theory, it might appear 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 services dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be required to remove inaccurate negative things. But this will hardly ever occur.
Many credit repair services will simply instruct their clients not to take action to fix 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 inaccurate information. The credit bureau can choose to investigate the dispute and take steps to investigate prior to making a determination. Then it might issue a letter to the creditor telling them that the information is inaccurate and have to be updated.
This scenario 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 speaking with a trader, he makes the decision to buy the car. A few months pass by and he predicts the dealer and says the cost he is offered is much less than what he was told. He asks for a refund and is told he can’t get a refund because the credit report contains an error.
The next step is 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 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’re given the benefit of someone else being able to assist you in this aspect of credit repair.