Credit Repair is an ongoing process, like the growth 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 areas of interest that may be reported, identifying the various mistakes which may be made and learning how to fix credit score errors. Among the best ways to improve your credit score is through Credit Repair.
There are numerous areas that are generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can lead to a number of problems, like the inability to become approved for home, auto and business loans; being diminished for employment; having bad credit report evaluations; not qualifying for insurance; not being able to get certain professional licenses; and a multitude of other problems. For example, 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.
While there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to ensure 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 example, the three largest credit repair bureaus in america must inform consumers of the differences between debt settlement and bankruptcy as well as 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 which may be taken against them and other important information. One of the biggest issues that consumers face is the inability to correctly 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. But, it doesn’t matter if those 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 this creditor reports that information to all of the credit reporting bureaus. 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 appear 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 advertising. Most credit repair services dispute negative items on a consumer’s report. If the credit reporting bureaus take the dispute badly, the creditor will be required to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair services will simply instruct their clients not to take steps to fix the problem. Why would they do that? If a creditor won’t 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 action to investigate before making a determination. Then it might issue a letter to the creditor notifying 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 see what the price will be. After talking with a trader, he makes the decision to purchase the car. A couple of months pass by and he predicts the dealer and says the price 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 would be for him to send a letter to the credit reporting agency, 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 hadn’t had the aid of the credit repair company, he might have had to attempt 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.