Credit Repair is a very powerful process for people to improve their credit score. It involves disputing the accuracy of items on your credit report that you feel are not valid. You can do this by using different delivery methods, such as mail, phone or fax, to contact a data furnisher or Credit Reporting Agency to verify or validate an account. Accidents in reporting can happen so it's important to understand the credit reporting laws to ensure the best success with the process. I have seen this almost daily with my clients and it's a very effective way to help people improve their credit score.Table of Contents
What is the most effective way to improve credit score?
For whom is credit repair intended?
What is the importance of Credit Repair?
What sort of elements can Credit Repair be utilized to address?
What is the most effective way to improve credit score?
Having 15 years of experience in the credit repair industry, I am passionate about making sure everyone understands the process. In terms of the best credit repair process, there isnt a one-size-fits-all answer. It really depends on your needs and the research you do to find out which process is the most suitable.
The two most common ways to do credit repair are:
1. Crafting and sending out dispute letters on your own.
2. Utilizing an online dispute tool or software.
3. Hiring a credit repair company.
I'm committed to providing clarity around the process to ensure that all individuals can make the best decision for them. Whichever option you choose, do your research and make sure you understand the process and what it all entails.
Crafting and sending out dispute letters on your own
If you decide to go down this route, it is important to set aside time to learn about the credit repair process and research the laws that can help you get the best results. Credit Repair can take 3-5 months on average to complete and it will consume 1-3 hours of your time minimal each month. To be successful, you should understand the regulations in the Fair Credit Reporting Act (FCRA) and the Fair Debt Collections Practices Act (FDCPA). These outline the guidelines a Data Furnisher and/or Credit Reporting agency must follow in order to report your account information to your credit report. Once you have done your research, you can create your own dispute letters and send them to the 3 major credit reporting agencies - Equifax, Experian, and Transunion - and wait for their response before sending a dispute to the Data Furnisher. 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. To ensure proof of dispatch, always send your dispute letters by certified mail and keep records of everything you do.
Utilizing an online dispute tool or software
Using an online dispute tool, such as Credit Karma, or submitting an online dispute with the three major credit reporting agencies can be counterproductive. When you dispute online, you sign off your rights to redispute any item on your credit report for an entire year. If you are not satisfied with the outcome of your first dispute, you will not be able to rechallenge it for a year. I recommend avoiding online dispute as you are likely to get generic and basic disputes that do not mention any specific consumer protection laws.
Hiring a credit repair company
Having 15 years of experience in the Credit Repair Industry, I can tell you the pros and cons of hiring a credit repair company. It can be worth your money if you find an established company with a proven track record. You may get to “sit back and relax†and the company will provide a credit consultation and help with complex situations. It can also save you money in the long run. The cons are that you may not get any results and there is a risk of being scammed. Additionally, some companies charge outrageous fees. It is important to do your due diligence and ask thorough questions before selecting the right credit repair company for you.
At the end of the day, you have the power to choose and make decisions that fit you best. Before you make a decision, write down all your concerns and research them. Never settle and always do your due diligence.
For whom is credit repair intended?
Anyone who has any sort of negative item on their credit report should definitely consider credit repair. It is your legal right to dispute any item on your credit report, even if the account itself is legally yours. I have had the pleasure of working with over 22,000 clients in the past 10 years and I have seen so many people go through life with an account on their credit report that was invalid or inaccurate, resulting in much higher interest rates. There are many companies offering a free credit consultation and they can at least look over your credit report to identify any errors or discrepancies.
I learned this key fact the hard way in my youth, but it has enabled me to view credit in a very different light. Your credit score has little to do with whether or not you can be approved for a loan, but rather your credibility that is the determining factor and your score decides the tier in which your interest rate will be. Quite remarkable, isn't it? Most people think that their credit score is the secret to getting a loan approved, when in actuality it is what is on your credit report that matters. As an example, I had a client with credit scores in the high 700's, but he was still turned down for a loan. You may not know that a score of 720+ qualifies you for the best interest rates on most loans and we quickly found out that he was denied due to recent credit inquiries. It may sound strange, but many lenders are not fond of seeing high and recent credit inquiries as they suspect that the person may have already been approved for the same loan by another company.
This is the moral of the story: make sure to check your credit report online at least every quarter and if you come across any derogatory remark, dispute it immediately.
What is the importance of Credit Repair?
Seeing the numerous credit reports I've reviewed over the years, it's not difficult to understand the importance of credit repair. Not only is it a necessity for loan application in the future, it helps break bad habits that could cause long-term financial damage. I often advise my clients that credit repair is merely one of many instruments for fixing credit issues, and it can't resolve financial issues on its own. Credit repair can help remove derogatory debt from a credit report, which can improve credit scores, as well as remove liability from debt that was not originally yours. However, it's just a tool, and it's essential to ensure you don'tt pay increasing amounts of interest for the rest of your life.
Having bad credit can make it hard to
- Get a job
- Get insurance
- Get approved for a home or car loan
- Get approved for a credit card
- Get approved for renters insurance
- Get approved by utility and phone companies
- Save money and grow wealth
People who start early to repair their credit have a better chance of retiring earlier and setting up future generations for success. There's no time like the present to start working on your credit, so don'tt wait any longer!
What sort of elements can Credit Repair be utilized to address?
Credit Repair can be a great tool to help you make sure that everything that is reported on your credit report is accurate and up to date. With that said, you should always make sure the personal information on your credit report is correct, identify and dispute any negative accounts, check for any negative payment history, and finally make sure that the public records and credit inquiries are accurate. All of these items can help your credit score and make sure that you have the best credit possible.
Lets wrap it up!
Having a great credit score is essential to becoming wealthy, and the worst thing someone can do is let bad credit keep them from achieving financial success. Although it can be hard to stay on top of credit issues, it doesn't have to be a struggle. If you're looking for assistance in credit repair, I highly recommend my company, ASAP Credit Repair. We are a family-owned and operated business, licensed and bonded in all 50 states, with a money-back guarantee on almost every service we provide. Plus, if you just need some advice or guidance, we offer a free consultation and evaluation. Visit us online at www.asapcreditrepairusa.com to learn more, or leave me a comment below and I'll be more than happy to help.