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 inspections to make sure that the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the various areas of interest that can be reported, identifying the numerous 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 which are commonly confused during the credit repair process, the first of which is inaccurate or incomplete information. This can lead to quite a few problems, like the inability to become approved for home, auto and business loans; being diminished for employment; having poor credit report evaluations; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other issues. By way of example, missing data from a credit report can lower a person’s credit score by up to 200 points. The usual 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 customers 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 the United States 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 issues 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. However, it doesn’t matter if these statements are true or not. As an example, 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 challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it would appear that a creditor has every right to include incorrect negative things 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 seriously, the creditor will be required to remove inaccurate negative items. But this will hardly ever occur.
Many credit repair providers will simply instruct their customers not to take action 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 inaccurate information. The credit bureau can decide to investigate the dispute and take steps 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 situation plays out over daily. 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 dealer, he decides to buy the car. A few months pass by and he predicts 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 he can’t get a refund because the credit report contains an error.
The next step would be 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 been able to generate a formal dispute. If he had not had the aid of the credit repair company, he might have had to try 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 aspect of credit repair.