Credit repair is, in my opinion, an incredibly powerful tool that has the potential to help many people, but it must be done properly and in accordance with the law. Over the past 15 years, my view on this topic has shifted, and I now believe it is one of the most effective and underutilized processes for improving a credit score. Credit repair involves disputing an item on your credit report using different methods such as mail, phone, and fax and requesting a data furnisher or credit reporting agency validate or confirm an account. You must understand the credit reporting laws to be successful in this process. In conclusion, credit repair can help people get a better credit score, but it has to be done correctly in order for it to be effective.
Table of Contents
What is the most effective credit repair method?
For whom is credit repair intended?
What is the importance of credit repair?
What kinds of matters can credit repair address?
What is the most effective credit repair method?
Send out dispute letters on your own
I have been in the credit repair industry for 15 years, and in my experience, I would suggest that if you don'tt have time to learn about the credit repair process and do the necessary research on the laws that apply, you should use a credit repair company. Credit repair usually requires 1-3 hours of your time every month and can take 3-5 months to complete.
Before you can dispute your own credit accounts, you should be familiar with the Fair Credit Reporting Act (FCRA) and the Fair Debt Collections Practices Act (FDCPA). These laws outline what the data furnisher and credit reporting agencies are allowed to report about your accounts. Doing your research and knowing these laws will help you come up with an appropriate approach for each account.
You should always create your own dispute letters because using templates may not be as effective. Make sure your first dispute letter is sent to all the three major credit bureaus - Equifax, Experian, and TransUnion. Then you can move on to the data furnisher later. The credit reporting agencies and data furnishers have to respond to your disputes within 30 business days or they must remove the account or reporting error off your credit report.
It's a good idea to send your dispute letters by certified mail so you have proof of when it was sent. Keep records of all the steps you take in the credit repair process.
Use an online Dispute tool or Software
I do not recommend using an online tool or software for credit repair because you will have to give up your right to redispute any item on your credit report for an entire year. Since credit disputes aren't usually resolved until after 2-4 rounds of disputes, if you are not satisfied with the outcome of your first dispute, you will have to wait for a whole year to challenge it again.
Also, online dispute tools and software provide generic and basic disputes which do not allow you to use any specific consumer protection laws. This means your chances of getting good results are not as high.
Hiring a credit repair company
I can tell you firsthand the pros and cons of hiring a credit repair company. Just like with most industries, you should do your research before selecting the right credit repair company for you.
Pros of hiring a credit repair company
They have the expertise and experience to help you get results
You can "sit back and relax"
You will get a credit consultation
Help with complex situations
Save money
Cons of hiring a credit repair company
No Results
Scam
Expensive
Ultimately, it is up to you to decide which credit repair process is best for you. Write down all your questions and concerns, and pick a solution that works best for you. Do your research and never settle.
For whom is credit repair intended?
Credit repair is for anyone who has a negative item on their credit report. It is your lawful right to challenge any entry on your credit history, even if the account is legitimately your responsibility. I've worked with more than 22,000 clients throughout the last decade, and I have seen numerous people living with erroneous or inaccurate accounts on their credit reports and paying high interest rates because they falsely believed that credit repair was only for accounts that didn't belong to them. Many companies provide a free credit consultation and will look over your credit report to determine if there is any inaccuracy or discrepancy.
This was a lesson I had to learn the hard way when I was younger, but it has given me an alternate perspective on credit. A credit score has little to do with being approved for a loan, it is rather your credibility that decides this, and your score will determine the tier of interest rate you receive. It's quite remarkable! Most individuals mistakenly assume that their credit score is the only thing that matters when obtaining a loan when in actuality it is what is on their credit report that matters the most. For example, I had a client with credit scores in the high 700s across the board, and he called me to say he had been denied a loan. Surprisingly, a credit score of 720+ normally qualifies someone for the best interest rates with most loans, and we quickly found out he was declined due to credit inquiries. Even though it may sound bizarre, most lenders shy away from high and recent credit inquiries, as it suggests that the individual might have already been approved for the same loan from another company.
The moral of the story is to check your credit report online at least every quarter and if there are any negative entries, dispute them.
What is the importance of credit repair?
Seeing just a fraction of the credit reports I have gone over has made me realize how important it is to have a good credit score. Credit repair is not only necessary for you to be able to borrow money in the future, but it also helps you make sure bad habits don'tt cause you long-term financial damage.
I always tell my clients that credit repair is just one of many tools they can use to solve their credit issues. It can help them remove bad debt from their credit report which in turn boosts their score. It can also help them take off the responsibility of a debt they don'tt legally owe. Still, credit repair is not a cure-all and it is important to use it in order to avoid paying high interest rates in the long run.
Bad credit can be the cause of many problems. It can make it hard for you to get a job, insurance, a loan for a car or house, a credit card, renter's insurance, and it can even stop you from saving money and building wealth. On the flip side, those who take the time to repair their credit in the early stages usually have a better chance of retiring early and having a better future for their family. So, don'tt wait any longer, start repairing your credit now!
What kinds of matters can credit repair address?
Credit Repair can help you fix any data that is reported on a credit report. It's important to make sure that the personal information section of your credit report is accurate. To quickly identify any inaccuracies, errors or incomplete information, it can help to go through and highlight the items on your credit report.
The most common items that require repair are personal information, negative accounts, negative payment history, public records, and credit inquiries. Personal information should be double-checked to ensure that names, addresses, dates of birth, and employment histories are correct. Negative accounts should be disputed, as should any late payments that are negatively impacting your credit score. Public records should also be disputed, and credit inquiries should be checked and potentially removed if they are not necessary.
Lets wrap it up!
Having good credit is crucial to achieving success in life, and the most successful people use their credit as a tool to build wealth. It's easy to be lazy and overlook credit problems, or worse, to be unaware of how to build an excellent credit score. If you are looking for help improving your credit score, I can guide you through the process and answer any questions you may have. My company, ASAP Credit Repair, is a family-owned and operated business that is licensed, bonded, and offers a money-back guarantee on almost every service we provide. We offer a free consultation and evaluation for anyone who needs advice or guidance. Learn more about us and what we can do for you at <a href="https://asapcreditrepairusa.shortcm.li/9a4hSz"></a>.