Credit Repair is an ongoing process, similar to the growth of any other system. A system that works perfectly will need periodic monitoring and regular inspections to make sure that the aims of the system are achieved. The same is true for fixing one’s credit history, including understanding the different regions of interest which may 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 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 become approved for home, automobile and business loans; being diminished for employment; having bad credit report evaluations; not qualifying for insurance; not being able to obtain certain professional licenses; and a large number of other issues. By way of instance, 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 national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to ensure that all customers 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 example, 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 might be taken against them and other important information. One of the biggest problems that consumers face is the failure to properly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, lenders are prohibited from making false statements regarding a consumer’s credit report. However, it doesn’t matter if those 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 agencies. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it might appear that a creditor has every right to include incorrect negative things 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 customer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be asked to remove inaccurate negative items. But that will hardly ever happen.
Many credit repair services will simply instruct their customers not to take steps to correct 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 erroneous 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 have 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 see what the cost will be. After speaking 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 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 comprises 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 employing the credit repair company, he would have been able to generate a formal dispute. If he had not had the help 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 aspect of credit repair.