Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will need periodic monitoring and regular reviews to make sure the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the different areas of interest that may be reported, identifying the various mistakes that can be made 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 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, 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 large number 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 steps to make certain 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. By way of instance, the three largest credit repair bureaus in america must inform consumers of the differences between debt settlement and bankruptcy in addition to 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 that might be taken against them and other important information. Among the biggest issues that consumers face is the failure to properly understand the Fair Credit Reporting Act and its own 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’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 bureaus. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it might seem 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 services dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be required to remove inaccurate negative items. But this will hardly ever occur.
Many credit repair services will simply instruct their clients not to take action to correct the problem. Why would they do this? If a creditor won’t take steps 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 prior to 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 purchase a car and does a little bit of research to find out what the cost will be. After talking with a trader, he decides to buy the car. A couple of months pass by and he calls the dealer and says the cost he’s offered is much less than what he was told. He asks for a refund and is told that he can’t get a refund because the credit report contains 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 make 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 business, you are given the benefit of someone else being able to help you in this part of credit repair.