Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will need regular monitoring and regular reviews to be certain the objectives of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different areas of interest that may be reported, identifying the various mistakes which may 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 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, auto and business loans; being declined for employment; having poor credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a multitude of other problems. 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.
When 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 those mistakes. For instance, the three largest credit repair agencies in the United States must inform 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 may be taken against them and other important information. One of the biggest issues that consumers face is the failure to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, creditors are prohibited from making false statements about 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 that creditor reports that information to all of the credit reporting agencies. 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 seem 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 advertisements. Most credit repair services dispute negative items on a consumer’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 happen.
Many credit repair services will simply instruct their customers not to take action to fix 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 choose to investigate the dispute and take action to investigate before making a determination. Then it might issue a letter to the creditor telling them that the information is inaccurate and need to be updated.
This scenario plays out over every day. A consumer decides to buy 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 couple of 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 comprises an error.
The next step is to allow him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he had done this before hiring the credit repair company, he would have managed to generate a formal dispute. If he had not had the aid of the credit repair company, he may 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 help you in this part of credit repair.