Individuals may not realize that they have both the right and ability to challenge the information found in their credit reports. They may protest these reports on the grounds of completeness and accuracy. The legal framework of the Credit Repair Organizations Act (CROA) and the Fair Credit Reporting Act (FCRA) gives individuals the right to dispute the information contained in their credit report. Enacted in 1970, the FCRA further ensures that agencies tasked with consumer reporting do so in a fair and impartial manner. This act also makes certain that when preparing reports, these agencies display the utmost respect for the individual's privacy. These acts are important because the health of an individual's credit report is extremely significant. Unacceptable information on a credit report can seriously impact the life of the affected individual.
How Negative Credit Items Can Affect a Credit Report
Items on a credit report that are negative or derogatory can adversely affect the individual's credit score. These negative credit items can put individuals at a disadvantage for a number of various reasons. For example, a poor credit score can result in things such as:
Negative or derogatory credit items that can appear on a credit report include things such as:
Consulting with Credit Repair Law Firms
Individuals that have incorrect information on their credit report or those that believe negative items should be removed need to contact credit repair law firms for legal assistance. The credit repair attorneys at these law firms will have the knowledge and expertise individuals need to ensure their credit report is more representative of their financial history and their financial trustworthiness. While individuals can dispute negative credit items on their own, this can sometimes be a lengthy process. Oftentimes, individuals are not satisfied with the findings of the credit bureau.