The credit score bureaus are regulated by the Fair Credit Reporting Act (FCRA) to make certain that all information they report is accurate. But naturally, the FCRA can’t keep track of everyone’s credit reports. As an alternative, it encourages consumers to check their own credit reports for errors.
To make that less complicated, the government introduced the Fair and Accurate Credit Transactions Act (FACTA). This amendment lets consumers acquire a free copy of their credit file from the three credit bureaus once a year.
Knowing that you may get a free credit report and dispute mistakes are one thing, however knowing the way it works is quite another. Let’s take a look at the secret to fixing those nasty errors in your credit report.
The Dispute Process Isn’t Simple
Anyone can dispute and try to repair the mistakes on their credit reports, however, not everyone receives the outcomes they want. According to a study carried out by the Federal Trade Commission (FTC), it was found that 70 percent of folks that dispute objects on their credit reports aren’t happy with the outcomes.
The items are nevertheless there, despite their belief they ought not to be. Lamentably, 50 percent of those people will give up because they don’t believe the system really works for them.
Even though the FTC study doesn’t reveal the cause of this problem, it’s probably due to consumers not realizing what they may be doing when disputing the mistake. It’d be interesting to see whether a credit repair organization can help them get the final results that they want.
It’s extraordinarily likely that in the event that they gave the problem to a professional, they would be able to help secure the desired outcome.
Negative Items Often Reappear
According to this same study, 1 percent of those whose negative credit items were removed also had them reappear on their credit reports after a while. This is terribly unsettling to most people.
They put up with all of the labor in order to get something removed, but then the lender goes and adds it back to their credit reports. That is like fixing one’s car only to have it break down again.
Should you go it alone, you may find that you need to repeatedly dispute some negative items in order to get them removed permanently, if you are even able.
On the other hand, trained credit repair experts can find items that should be removed and then advocate keep them off of your credit reports once and for all.
Credit Repair Reduces Your Risk to Lenders
Many folks think that correcting problems on a credit report is a lost cause, but that is rarely the cases. Actually, if negative items are deleted from your credit report, your credit score usually goes up by several points. The effect can be dramatic on your credit scores within one or two cycles.
As a matter of fact, 20 percent of those who had negative items deleted ended up in a lower risk profile, according to the FTC’s study. They were seen as less risky by merely getting errors removed.
The Dispute Process Takes Time
According to the FCRA, the credit bureaus have 30 days to reply to your credit disputes. If they are unable to verify that the disputed items are accurate and valid, the items must be removed from your credit report.
Due to that, your score can increase in as little as 30-45 days. But keep in mind that the effect is usually small and must add up over time. In fact, it may take several months for you to see the full benefits of credit repair. So if you are planning to make a large purchase using credit or loans, it would be a good idea to begin the credit repair process right away.
The Truth Is Freeing
Now that you’re aware of the secret behind removing errors from your credit reports, you hopefully realize why it’s so important. You don’t need to allow credit problems to keep your score down. You have options.
For effective, legal credit repair, reach out to our experts today to put your credit problems behind you.