Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will need regular monitoring and regular reviews to be certain that the objectives of the system are achieved. The same is true for fixing one’s credit history, including understanding the different regions of interest that can be reported, identifying the various mistakes that may be created and learning how to fix credit score errors. One of the best ways to improve your credit score is via Credit Repair.
There are several areas which are commonly confused throughout 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 get approved for home, auto and business loans; being declined for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a large number of other issues. For 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 federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to ensure that all consumers have access to fair and accurate 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 inform consumers of the differences between debt settlement and bankruptcy as well as 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. One of 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 about a consumer’s credit report. But, it doesn’t matter if these 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 that creditor reports that information to all the credit reporting bureaus. So, what if a consumer decides to question that negative information? Is it still legally valid?
This is a tricky question. In theory, it might 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 advertising. Most credit repair services 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 occur.
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 refuses to take action 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 action to investigate prior to making a determination. Then it could issue a letter to the creditor telling them that the information is inaccurate and have to be updated.
This scenario plays out over every day. A consumer decides to purchase a car and does a little bit of research to see what the price will be. After speaking with a dealer, he decides 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 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 hiring the credit repair company, he would have been able to make a formal dispute. If he had not had the aid of the credit repair company, he may have had to attempt 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 aspect of credit repair.