The idea of credit repair has changed over the years for me. It used to be a case of disputing accounts on your credit report, but I now see it as a way to ensure that the information being reported on your report is accurate and up to date. This process can be used to contest the validity of any active or past account on your credit report. With the help of consumer protection laws, consumers are allowed to request proof that an account is accurately reported and that the debt itself is valid. In many cases, there are errors made when reporting information to credit bureaus, and these errors compound, leading to incorrect balances, past due balances, and incorrect interest rate calculations. This is why credit repair is so critical as it allows you to dispute any item on your credit report. You can do this by mailing, phoning, or faxing data furnishers or credit reporting agencies to verify or validate an account. It's essential to understand the credit reporting laws to ensure your credit repair process is successful.Table of ContentsWhat is the most effective way to repair credit?To whom does credit repair apply?What is the importance of Credit Repair?What kinds of things can Credit Repair address?
What is the most effective way to repair credit?
There are many ways to repair credit, but the most effective way is to make all payments on time, keep your credit utilization low, and dispute any errors on your credit report. By following these steps, you can improve your credit score and qualify for better interest rates on loans and credit cards.
Send out dispute letters on your own
I can confidently state that if you do not have adequate time to devote to understanding the credit repair process and researching the important laws that are available to help you achieve the best results, I firmly suggest you avoid credit repair disputes on your own. Credit Repair often takes 3-5 months to finish and can consume 1-3 hours of your time each month. If you decide you do not have the patience and time to study and mail out disputes then I recommend you consider hiring a Credit Repair company which I explain in the next section.Before you can send out your own disputes, you need to comprehend the credit reporting regulations that are in the Fair Credit Reporting Act (FCRA) and the Fair Debt Collections Practices Act (FDCPA). Both outline the rules a Data Furnisher and/or Credit Reporting agency must follow in order to report your account information to your credit report. Doing your research and learning these laws will assist you to approach each negative account on your credit report correctly and come up with the best approach on how to dispute the accounts.When you have done your research and due diligence on the laws, you will want to create your own dispute letters to send out. I highly recommend you never use dispute template letters like the ones you can find online but instead use them to help you structure your letter. You need your dispute letter to be unique and not something that has been sent to the credit bureaus before. When disputing, it's important that your 1st Dispute letter go out to the (3) primary 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 off your credit report immediately.As a pro tip, I suggest that you always send your dispute letters by 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. Always keep records of everything you do within the process.
Use an online Dispute tool or Software
Using an online dispute tool Like Credit Karma or better yet submitting an online dispute with the three main credit reporting agencies is a big No No. What most people find out the hard way is when you dispute online, in general, you actually waive your rights to redispute any item on your credit report for an entire year. Since most credit disputes aren’t resolved until after 2-4 rounds of disputes, if you are not happy with the outcome of your first dispute then you will not be able to rechallenge or redispute for an entire year.Also, I never recommend disputing online with any software or tool because the disputes that they provide are usually very generic and basic and they do not permit you to dispute using any particular consumer protection law which means your chances of getting good results are usually limited.I would avoid ever doing any online dispute if you truly want to get the best results from your credit disputes.
Hiring a credit repair company
As I have been in the Credit Repair Industry for 15 years, I can tell you firsthand the pros and cons of hiring a credit repair company. Just like most industries, there are good and bad apples, and you really need to make sure you 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 resultsRecall when you hire any company in any industry you are paying for convenience and their expertise. If you find a very established company with a proven track record, it can be worth every penny.Hands off ExperienceYou typically will get to “sit back and relax†meaning your involvement in the process is usually not necessary so you can focus on things in your life that are more important.
Education Credit LearningA lot of credit repair companies will provide a credit consultation so they can provide you with information on exactly what is affecting your credit score along with things that you can do to improve it quickly.
Help with complex situationsEvery credit report is different and sometimes it will take someone who has dealt with certain circumstances to use their expertise to get some of the harder accounts removed.
Save moneyOne of the ultimate goals most people have for the reason to fix their credit is to be able to use their credit to make purchases at a decent and low-interest rate. Credit issues can cost you thousands of dollars annually in fees, and so by just removing errors and increasing your credit score, you will save a lot in the long run.
Cons of hiring a credit repair company
No ResultsJust like with anything that isn’t Guaranteed, you will run the risk of not getting any results and paying money essentially for nothing. Credit Repair is never guaranteed, so its important you know what you're getting from the credit repair company before you hire them. Ask very thorough questions and also see if they provide a money-back guarantee.ScamI have been in the industry a long time and have run a successful company due to the standards and mission statement that I live by daily. Unfortunately, there are a lot of fly-by-night companies in our industry that do not last long and you could fall victim to someone taking your money, and you never have any recourse. Do your due diligence, ask the company to provide a copy of their license as well as find out how long they have been in business.ExpensiveSome credit repair companies are very affordable, but others can charge outrageous fees. A lot of people struggling with their credit usually are also struggling financially, so it's essential if you do not have a lot of money to put towards credit repair that you shop around or try to do it on your own.What an amazing thing you, as an American, have is the power to choose and make decisions. Write down all your doubts when it comes to fixing your credit and pick a solution that fits you best. Never settle, and always do your due diligence and research.
To whom does credit repair apply?
Anyone who has any kind of negative item on their credit report should consider credit repair. It is your legal right to dispute any item on your credit report which isn't necessarily your responsibility. Over the past decade, I have worked with more than 22,000 clients and I have seen so many people carry the burden of an incorrect or invalid account in their credit report, paying higher interest rates as they thought credit repair was only for accounts that weren't theirs. Many companies offer free credit consultations, which can at least help you identify errors or discrepancies on your credit report.I learned this the hard way when I was younger, and it gave me a different perspective on credit. A credit score has little to do with being approved for a loan; instead, it is your credibility that determines this, and your score decides the tier in which your interest rate will be. Isn't it amazing? Most people believe that their credit score is the ultimate key to getting a loan when it's really what's on their credit report. I remember a client who had scores in the high 700s but was rejected for a loan. They didn't realize that a 720+ score qualifies them for the best interest rates on most loans. We soon discovered the reason for the rejection was due to credit inquiries. It may sound unusual, but most lenders are hesitant to see high and recent credit inquiries as they may suspect they have already been approved for the same loan elsewhere.To sum it up, always make sure to check your credit report online at least every quarter, and if you find any derogatory remark, make sure to dispute it.
What is the importance of Credit Repair?
Seeing just a fraction of the credit reports I have encountered over the years has been enough to make it clear why credit repair is so essential. Not only is it vital to be able to take out a loan in the future, but it is also important to nip bad habits in the bud and prevent them from causing long-term financial problems.When dealing with my clients, I always emphasize the fact that credit repair is only one of the tools which can help you tackle credit issues. It cannot solve your financial issues on its own. It can, however, help you get rid of negative debt from your credit report, thus raising your score. Additionally, it can help you remove debt that is not even legally yours. That said, credit repair is only one of many tools to help you repair your credit, and it is necessary to make sure that you do not end up paying interest for the rest of your life.Having poor credit can result in a variety of negative outcomes, such as not being able to get a job, insurance, or a loan for a car or house. It can even prevent you from getting a credit card, renting a property, or getting phone and utility services. Moreover, it can stop you from accumulating savings and growing your wealth.Those who start tending to their credit score early have a better chance of retiring early and setting up their future generations for success. So don't wait – start repairing your credit now!
What kinds of things can Credit Repair address?
Credit Repair can help fix any inaccuracies, errors, and incomplete information that is reported on your credit report. The most commonly disputed items you should focus on are your personal information, any negative accounts, negative payment history, public records, and credit inquiries. Verifying that the information on your credit report is accurate, up-to-date, and complete will help ensure a higher credit score.
To conclude
Having a good credit score is a crucial factor in building wealth and achieving financial success. Unfortunately, many of us are either too lazy or too uninformed to take the necessary steps to improve our credit. That's why I'm here to help! If you'd like some guidance on the process or just need a push in the right direction, leave me a comment below and I'd be happy to help. Alternatively, if you're looking for a credit repair company, check out ASAP Credit Repair. We are a family-owned and operated nationwide business that is fully licensed and bonded. Moreover, we offer a money-back guarantee on almost every service we offer and a free consultation and evaluation. Visit us at <a href="https://asapcreditrepairusa.shortcm.li/9a4hSz"></a> to learn more.