Credit repair, in my opinion, is a highly valuable and underutilized process that allows you to challenge the accuracy of any information on your credit report. It's an important process that can help you fix any errors that may be inaccurately reflecting on your credit score or contest the validity of a debt. I have seen countless cases where clients have found legitimate errors on their credit reports that have resulted in better scores. With the correct knowledge of consumer protection laws, you can effectively and efficiently use credit repair to help improve your credit score.
Table of Contents
What is the optimal way to fix credit?To whom is credit repair applicable?What is the importance of Credit Repair?What kind of items can Credit Repair address?
What is the optimal way to fix credit?
The optimal way to fix credit begins with a comprehensive assessment of one's financial situation. Start by obtaining a free credit report and scrutinizing it for errors or discrepancies. Dispute any inaccuracies to the credit bureaus and provide supporting evidence. Next, create a realistic budget that allows for timely bill payments and debt reduction. Prioritize paying off high-interest debts while making minimum payments on others. It's crucial to avoid new credit inquiries and focus on establishing a positive payment history. Consider negotiating with creditors for lower interest rates or settlement options. Seeking professional advice from credit counseling agencies can also be beneficial. Patience and persistence are key, as rebuilding credit takes time, but with responsible financial habits, it is possible to improve one's creditworthiness over time.
Send out dispute letters on your own
I have spent 15 years in the credit repair industry, and when I recommend you do not attempt to do credit repair disputes on your own, I mean it. Credit Repair can take 3-5 months on average and requires 1-3 hours of your time minimum each month. If you do not have the patience and time to learn and mail out disputes, then I recommend you look into hiring a Credit Repair company.Before you can send out your own disputes, you need to understand the credit reporting regulations that are in the Fair Credit Reporting Act (FCRA) and the Fair Debt Collections Practices Act (FDCPA). This will help you approach each negative account on your credit report correctly and come up with the best approach on how to dispute the accounts.When you create your dispute letters, I highly recommend you never use template letters like the ones you can find online, but use them to help you structure your letter. Make sure your letter is 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) 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 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
While it may seem tempting to use an online dispute tool Like Credit Karma or to submit an online dispute with the three major credit reporting agencies, it's a big No No. What most people find out the hard way is when you dispute online, in general, you actually sign off 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 do not like 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 typically really generic and basic and they don’t allow you to dispute using any specific consumer protection law, which means your chances of getting good results is typically limited. I would avoid ever doing any online dispute if you're truly looking to get the best results from your credit disputes.
Hiring a credit repair company
Since I actually have been in the Credit Repair Industry for a long time, I can tell you firsthand the upsides and downsides 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 due diligence before selecting the right credit repair company for you.
Benefits of hiring a credit repair company
They have the expertise and experience to help you get resultsRemember, when you hire any company in any industry, you are paying for convenience and their expertise. If you find a really established company with a proven track record, it can be worth every penny.
Handoff 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.
Drawbacks 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 it's 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 very successful company because of 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 important 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.Look, the amazing thing you have as an American is the power to choose and make decisions. Write down all your concerns 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 is credit repair applicable?
Anyone with a negative item on their credit report should think about credit repair. It's your legal right to dispute anything on your credit report, even if the account is yours. I've worked with more than 22,000 clients in 10 years, and I've seen so many people pay higher interest rates because they believed credit repair was only for accounts that weren't theirs. Many companies offer a free credit consultation, and they can examine your credit report to see if there are mistakes or inconsistencies.I learned this harsh lesson in my youth, but it changed my outlook on credit. Your credit score has almost nothing to do with whether you're accepted for a loan, but rather it's your credibility that counts. Your score determines the rate of interest you'll be offered. How cool is that? Most people think the number is the key to loan approval when in reality, it's what's on your credit report. I had a client with scores in the high 700s who applied for a loan and was rejected. You may not know this, but a 720+ credit score can qualify you for the lowest interest rates on most loans. We soon discovered the rejection was due to recent credit inquiries. It might sound strange, but many lenders don't want to see numerous inquiries, as it suggests the person has already been approved for the same loan elsewhere.In conclusion, check your credit report every 3 months, and if there is any negative remark, dispute it.
What is the importance of Credit Repair?
Viewing even just one in ten of the credit reports I have personally seen over the years makes it abundantly clear why credit repair is paramount. Not only is it essential if you want to obtain loans in the future, but it is also necessary to help you get ahead of any bad financial habits before they cause irreparable damage.I often tell my clients that credit repair is merely one tool amongst many that can be used to fix credit issues. It won't solve all your financial predicaments, but it can help you wipe out negative debt from your credit report, which will, in turn, boost your credit score. It also allows you to remove liability from a debt that is not legally yours. Remember, though, that credit repair is only a means to an end.Having a poor credit score can have a slew of detrimental impacts, preventing you from getting a job, insurance, a loan, or a credit card and from signing up for renters insurance or utilities. It can also keep you from saving money and growing your wealth. Those who take their credit repair seriously and start early have a much better chance of retiring early and setting their future generations up for success. Don't wait to start repairing your credit; begin today!
What kind of items can Credit Repair address?
Credit Repair can help you take care of any incorrect or incomplete information on your credit report. Check your report carefully and use a highlighter to easily spot the inaccuracies. Common items to dispute include personal information, negative accounts, late payment history, public records, and credit inquiries. Making sure that all the information is accurate on your credit report is essential for getting the best loan interest rates in the future.
In conclusion
Having the right credit score can be the difference between being able to build wealth or not. It's a shame that some folks neglect their credit because of their own laziness or lack of knowledge. However, it doesn't have to be that way. If you need a credit repair company to help you with your credit, I would highly recommend checking out my company ASAP Credit Repair. We are a nationwide family-owned and operated business that is fully licensed and bonded. Plus, we offer a money-back guarantee on almost all of our services. We even offer a Free consultation and evaluation if you just need some advice or a push in the right direction. Head over to <a href="https://asapcreditrepairusa.shortcm.li/9a4hSz"></a> to learn more. Feel free to leave me a comment below, and I would be more than happy to guide you through the process and offer you advice every step of the way.