Friday, September 16, 2011

Credit Repair In Arkansas

By Matt Listro


The happy news is that the law favors the consumer. However, without the correct understanding of the law it becomes difficult and time consuming for the individual to fix their own credit. The Fair Credit Reporting Act allows consumers the legal right to dispute items on their credit reports that may be inaccurate, out of date, incomplete or unverifiable. Additionally, The Fair and Accurate Credit Transactions Act of 2003 which changed the Fair Credit Reporting Act, requires the Federal Trade Commission (FTC) and other federal financial agencies to evaluate and report to Congress on both credit scoring and accuracy.

These are good tools for the consumer but it does not include free credit reporting or the ability to simply dispute a low score. On top of that it is still up to the consumer to verify the accuracy and integrity of their own credit score. Unfortunately the FTC does not have the resources to help each individual consumer. The credit bureaus will surely not help you change your score; they make more money off of people with bad credit scores! Think about it, the person with a meiocre credit score has to apply for credit more times than the person with a higher credit score. The credit bureaus make money by selling your credit report to lenders. The more times you ask for credit, the more money they can make!

Many consumers are using 3rd party credit repair companies to help them mend their score and get on with their lives. The consumer law concerning fair credit reporting can be perplexing and convoluted for the novice. Credit repair specialists can help consumers repair their credit quickly and effectively at a low cost. Our goal is to align consumers with the appropriate provider based on their specific needs. Some companies repair credit quickly, others utilize credit counseling over a long period of time

The first step in the credit repair process is a detailed review of your credit reports. There is more involved than simply spotting items that do not belong to you. Many of the errors on credit reports may look familiar but should not be reported as a matter of law. These legal compliance issues require training to identify. Doing the job on your own can be rewarding, but unless you have the time to learn the applicable laws for credit reporting and debt collecting you should consider employing a top credit repair service. A respected service will quickly denote the issues that should be challenged as well as providing a plan of action for rebuilding and optimizing your scores.

Is your credit score crappy ? For many Americans this three-digit evaluator is a very important factor. Today credit scores are not solely used to determine consumer interest rates on a car loans, but are now becoming very important in deciding insurance premiums and even employment. For some people terrible credit equals denial of loan, loss of coverage and unemployment. Even if extended a loan, how much will negative credit cost over a 5 year auto loan or a 30 year mortgage? The answer is thousands of dollars and perhaps a lesseneddiminished standard of living.

Credit scores are firmly woven into the fabric of U.S. society. A blemished credit history can add hundreds or thousands of dollars to a household's annual interest bill. For some others, standard features of modern life such as homeownership and the convenience of credit cards can be denied because of atrocious credit scores. Even educational success can be threatened when loan access depends on the respectable credit scores of students and their parents. Scores are sometimes the basis for refusing job candidates.

Credit scores are usually used by all lenders and are becoming more prominent with employers, insurers, landlords, as well as cell phone and utility companies. The reality is that a excellent credit score is black and white. It is a mathematical formula that allows lenders to make a automated decision on the consumer's ability to repay a loan, mortgage or credit card. Supporters of the system argue that it does not discriminate based on race, sex, etc. Those opposed to the system point out that credit scores fail to take tragedies such as medical emergencies or loss of employment into consideration. Although credit scoring is considered nondiscriminatory, some are skeptical that low-income workers, minorities and other segments of the population who can not access credit cards and mortgages may score less well than others. Another major concern is that the accuracy of credit reporting is not a priority of the big credit bureaus and is thus suspect.




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