Today, credit repair is widely regarded as one of the most powerful methods of improving an individual's credit score. This process simply involves utilizing consumer protection laws to dispute inaccurate items on your credit report. Essentially, this gives you the right to ask any data provider to provide valid proof that a given account is not only accurately reported but that the debt itself is valid. Shockingly, this is something that is not always the case. For example, an employee responsible for reporting to a credit reporting agency might type in the wrong amount for a payment you made or forget to report certain information. This may seem like a minor issue, but if it is not fixed, the past due balance, interest charged on the loan, and other details may be incorrect.
In order to make the most of credit repair, one must understand the credit reporting laws and know how to deliver a dispute to a data furnisher or credit reporting agency. With this knowledge and the right approach, credit repair can help individuals achieve their financial goals.
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Which method of credit repair is most effective?
As someone with 15 years of experience in the credit repair industry, I always strive to provide my readers with the most transparent writing possible. Therefore, when it comes to the Best Credit Repair Process, the answer is that it is a matter of personal preference. To determine the best approach for you, it is best to do some research and compare the three most common credit repair methods. These include sending out dispute letters on your own, using an online dispute tool or software, and hiring a credit repair company. I will explain each option in more detail below.
Send out dispute letters on your own
Having 15 years of experience in the credit repair industry, I can certainly vouch for the importance of researching the process thoroughly before embarking on your own. The best way to go about it is to understand the regulations of the Fair Credit Reporting Act (FCRA) and the Fair Debt Collections Practices Act (FDCPA). Both outline the guidelines a data provider and/or credit reporting agency must follow in order to report your account information to your credit report. By doing your research and learning these laws, it will help you to approach each negative account on your credit report correctly and come up with the best approach on how to dispute the accounts.
I highly recommend you create your own dispute letters to send out instead of using the template letters available online. Your dispute letter needs to be unique and not something that has been sent to the credit bureaus before. When disputing, it's important that your first dispute letter go out to the (3) major credit reporting agencies, Equifax, Experian, and Transunion and wait on their response before you send a dispute out to the data furnisher like the original creditor or a collection agency. The credit reporting agencies and data furnishers are required to respond to your disputes within 30 business days, or they must remove the account or reporting error from your credit report immediately.
As a pro tip, I suggest that you always send your dispute letters certified mail so you have a provable time stamp that you can use in case you ever need to file a complaint or a lawsuit. Keep a record of everything you do during the process.
Use an online Dispute tool or Software
I do not recommend disputing online with any software or tool, as the disputes they provide are usually generic and basic, and they don't allow you to dispute using any specific consumer protection law, which limits your chances of getting good results. Also, when you dispute online, you actually sign off on your rights to redispute any item on your credit report for an entire year, so if you are not satisfied with the outcome, you will have to wait an entire year before you can rechallenge.
Hiring a credit repair company
When you're looking to hire a credit repair company, I advise doing your due diligence to find the best one for you. Just like with most industries, there are good and bad companies, so you must be sure to ask thorough questions and check for a money back guarantee.
The pros of hiring a credit repair company include gaining expertise and experience to get results, a hands-off experience, learning about credit, and help with complex cases. They can also save you money in the long term.
The cons of hiring a credit repair company include no results, scams, and expensive fees.
At the end of the day, the decision is yours and you need to pick the solution that best fits your needs. Do your research and never settle.
For whom is credit repair intended?
Everyone who has any kind of negative entry on their credit report should think about credit repair. It is your legal right to dispute any item on your credit report, and even if the account is legally yours, that does not mean that it is correct on your credit report.
Throughout my 10 years of experience, I have worked with over 22,000 clients and seen many individuals go through life with an incorrect or inaccurate account on their credit report, and pay high interest rates because they assumed credit repair was only for non-existent accounts. Most companies provide a free credit consultation, where they can look over your credit report to find any errors or discrepancies.
This was something I found out the hard way when I was younger, but it has surely changed my view of credit in general. A credit score doesn't always determine whether or not you will get approved for a loan; instead, it is your credibility and the score that determine the tier in which your interest rate will be. Amazing, right? Most people think that their credit score is the key to getting approved for a loan, when actually, it is what is on your credit report that is important.
For example, I had a client who had a credit score of over 700, but he was still denied a loan. What most people don't know is that a score of 720 or higher qualifies you for the best interest rates on most loans. It turned out that his loan was denied due to the high number of credit inquiries he had! Even though it sounds odd, most lenders don't want to see recent inquiries, as it raises suspicion that the loan has already been approved elsewhere.
Good Read: What Is Credit Repair Company and What Can They Do For Your Bad Credit
To sum it up, you should pull your credit report online at least every quarter and dispute any negative remarks you find.
What is the importance of Credit Repair?
Seeing just a fraction of the credit reports I have come across has made me a firm believer in why credit repair is essential. It is not only essential for taking out a loan in the future but also for preventing bad spending habits from causing you damage down the line.
I've made it a point to tell my clients that credit repair is just one of the many tools at their disposal. It can't completely solve your financial issues, but it can help you eliminate negative debt from your credit report and thus boost your credit score. Credit repair can also help you clear any debt that is not legally yours. Nevertheless, credit repair is an important tool that can help you avoid paying additional interest for the rest of your life.
Having a bad credit score can lead to a variety of restrictions, such as:
- Difficulty getting a job
- Inability to get insurance
- Unsuccessful attempts at obtaining a home or car loan
- Denied credit cards
- Difficulty renting
- Problems with utility companies
- Hindering savings and growth of wealth
Starting to repair your credit early opens up a variety of possibilities and can help you achieve financial security and even an early retirement. Dont be afraid to start the credit repair journey now!
What sorts of problems can Credit Repair address?
Credit Repair can be a great way to fix any information that is being reported on your credit report. A good first step is to get a copy of your credit report and use a highlighter to identify any inaccuracies, errors, or incomplete information. Some of the most common items to dispute are personal information, negative accounts, negative payment history, public records, and credit inquiries. Making sure that all the information reported is accurate and up to date will help you maintain a good credit score.
ASAP Credit Repair: Your Helping Hand To Fix Your San Antonio Credit Score
It's never too late to take action and build credit. I'm here to tell you that you can create a fantastic credit score with the right tools. If you're looking for a reliable credit repair company to help you out, look no further! ASAP Credit Repair is a nationwide, family owned and operated business that's fully licensed and bonded. We offer a money back guarantee on almost every service we offer, and a free consultation and evaluation. Plus, we'll be with you every step of the way to provide guidance and advice. Be sure to check us out at ASAP Credit Repair USA and leave your comments below!