Credit Repair is an ongoing process, similar to the development of another 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 regions of interest which can be reported, identifying the various mistakes that may be created and learning how to repair credit score errors. One of the best ways to improve your credit score is through Credit Repair.
There are several areas which 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, like the inability to become approved for home, auto and business loans; being diminished for employment; having poor credit report ratings; not qualifying for insurance; not being able to get certain professional licenses; and a large number of other problems. By way of example, 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 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 agencies in the United States must notify 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. One of the biggest problems that consumers face is the inability to properly understand the Fair Credit Reporting Act and its 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. As an example, it’s perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if this creditor reports that information to all of the credit reporting agencies. So, what if a consumer decides to question that negative information? Is it officially valid?
This is a tricky question. In theory, it would seem that a creditor has every right to include inaccurate negative items 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 bureaus take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But this will hardly ever occur.
Many credit repair providers will simply instruct their customers not to take action 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 action to investigate before making a determination. Then it could issue a letter to the creditor telling them that the information is inaccurate and need to be updated.
This situation plays out over every day. A consumer decides to purchase a car and does a little bit of research to see what the cost will be. After speaking with a dealer, he makes the decision to buy the car. A couple of months pass by and he calls the dealer and says the price he is 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 agency, disputing the errors on his credit report. If he’d done this before employing the credit repair company, he would have been able to make a formal dispute. If he hadn’t 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 business, you’re given the benefit of someone else being able to assist you in this aspect of credit repair.