Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will need regular monitoring and regular inspections to make sure that the objectives of the system are achieved. The same is true for fixing one’s credit history, including understanding the various regions of interest which may be reported, identifying the numerous mistakes that can be created and learning how to fix credit score errors. One of the best ways to raise your credit score is through 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 can lead to quite a few problems, such as the inability to become approved for home, automobile and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a multitude 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.
When 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 these mistakes. For instance, the three largest credit repair bureaus in america must inform 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 may be taken against them and other important information. Among the biggest problems that consumers face is the inability to correctly understand the Fair Credit Reporting Act and its rights.
Under FCRA, creditors are prohibited from making false statements regarding a consumer’s credit report. However, it doesn’t matter if these statements are true or not. For instance, it is 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 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 incorrect negative items on a consumer’s credit report. But that would mean that the creditor is practicing false advertising. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be asked to remove inaccurate negative things. But this will hardly ever occur.
Many credit repair providers 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 erroneous 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 notifying 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 find out what the price will be. After talking with a trader, he decides to purchase the car. A few months pass by and he predicts the dealer and says the price 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 is for him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he had done this before hiring the credit repair company, he would have been able to generate 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’re given the benefit of someone else being able to assist you in this aspect of credit repair.