Credit repair, to me, is a powerful tool that not enough people are aware of. It is a process that, with the right knowledge, can be used to help improve a person's credit score. Basically, there are laws in place that give the consumer the right to question the validity of any accounts in their credit report. This means that they can ask creditors or collection agencies to prove that the account is accurately reported and the debt is valid. Unfortunately, many people are unaware that errors can be made when reporting to the credit bureaus, like wrong amounts or forgotten information. If these issues are not corrected, the consumer could end up paying incorrect interest or a wrong balance. Credit repair is a method used to dispute any incorrect items on a credit report, usually done through fax, mail, or phone. It is important to be well-informed of the credit reporting laws to maximize the success of the process.Table of Contents
- What is the optimal credit restoration technique?
- For whom is credit repair intended?
- What is the importance of credit repair?
- What kind of things can credit repair help with?
What is the optimal credit restoration technique?
With over 15 years of experience in the credit repair industry, I take great care and attention to detail in all my articles and blogs. My hope is that my writing conveys my transparency and knowledge of the subject matter. As for determining the Best Credit Repair Process, it's not a simple answer, as different approaches work best for different people. Essentially, there are three primary ways to approach credit repair: sending out dispute letters on your own, using an online dispute tool or software, or hiring a credit repair company. I'll go into detail on each approach to help you determine which one may work best for you.
Send out dispute letters on your own
If you have the time to learn the credit repair process and research the laws that will help you achieve the best results, then you can send out disputes on your own. Credit Repair typically takes 3-5 months and you will need to spend 1-3 hours a month. It is important that you understand the credit reporting regulations that are in the Fair Credit Reporting Act (FCRA) and the Fair Debt Collections Practices Act (FDCPA) to dispute correctly. By doing your research, you can approach each negative account on your credit report correctly and come up with the best approach.
It is recommended to send your dispute letters by certified mail and keep records of everything you do within the process. Do not use dispute template letters that you can find online, but use them to help you structure your letter. Your dispute letter should be unique.
Online Dispute tool or Software
It is not recommended to use an online dispute tool or to submit an online dispute with the three major credit reporting agencies. When you dispute online, you sign off your rights to redispute any item on your credit report for an entire year. The disputes that these tools provide are usually generic and basic and they do not allow you to dispute using any specific consumer protection law. Therefore, your chances of getting good results is limited.
Hiring a Credit Repair Company
Hiring a credit repair company can help you get results, as they have the expertise and experience. It is important to do your due diligence when selecting a credit repair company to make sure you are getting the best for your money. Credit repair companies will typically provide a credit consultation and help with complex situations. They can also save you money in the long run by removing errors and increasing your credit score.
However, there is no guarantee of results when hiring a credit repair company, and you could fall victim to someone taking your money without results. Credit repair companies can be expensive, and it is important to shop around or try to do it on your own if you do not have a lot of money to put towards credit repair.
Look, you, as an American, have 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.
For whom is credit repair intended?
Anyone who has any negative items on their credit report should consider credit repair. It is your legal right to dispute any item on your credit report, and even if the account itself is legally your responsibility, that doesn't mean there aren't any errors on your credit report. In my 10 years of working with over 22,000 clients, I've seen many individuals dealing with an account on their credit report that was invalid or inaccurate and paying high-interest rates because they thought credit repair was only for accounts that weren't theirs. Fortunately, many companies offer a free credit consultation and can look over your credit report to identify if there are any mistakes or discrepancies.
I learned this lesson the hard way when I was younger, and it has helped me look at credit differently. 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 of your interest rate. Isn't that fascinating? Most people believe their credit score is the key to getting a loan, when in reality it is what is on their credit report. I had a client with credit scores in the high 700s across the board, but he was still turned down for a loan. Little did he know that a 720+ credit score qualifies you for the best interest rates on most loans. The reason he was declined was due to credit inquiries. Many lenders don'tt want to see high and recent credit inquiries, as it raises questions about whether they might have already been approved for the same loan with another company.
It is important to remember to take a look at your credit report online at least every quarter, and if you find any derogatory remarks on it, you should dispute them.
What is the importance of credit repair?
Seeing the hundreds of credit reports I have analyzed, it's easy to grasp why credit repair is essential. Not only is it necessary to secure a loan in the future, but it is also necessary to avoid long-term financial hardship. I constantly tell all my clients, “Credit repair is just one of many ways to correct your credit problems.†Credit repair alone can't solve all your financial worries, but it can help clear away negative debt from your credit report, leading to an improved credit score. Furthermore, it can help to remove any liabilities that have been wrongly assigned to you. Again, however, credit repair is only a tool to help fix your credit, and it is essential in order to stop the compounding of interest on a debt.
Having poor credit can prevent you from doing the following:
Getting a job
Getting insurance
Obtaining a home or car loan
Getting a credit card
Getting approved for renters' insurance
Being approved by utility and phone companies
Prevents you from saving money and accumulating wealth
Those who start to work on their credit early to improve their score have a greater chance of achieving financial stability and providing a better future for their descendants. There's no time like the present to begin repairing your credit, so take action now!
What kind of things can credit repair help with?
Credit repair can be a huge help for anyone looking to improve their credit report. It can help fix any data that is reported on a credit report, so that the most important personal information is accurate and up-to-date. It's important to review your credit report and use a highlighter to identify errors, incorrect entries, or incomplete information. Commonly disputed items include personal information, negative accounts, negative payment history, public records, and credit inquiries. Ensuring that your name is spelled correctly, only your current address is reported, your date of birth is accurate, and all your employment history is removed is a must. Additionally, any negative accounts like collections or charge-offs, and late payments should be disputed. Public records such as Bankruptcies should also be disputed. And finally, you should dispute all your credit inquiries to make sure they are indeed accurate and valid. Doing this can help you keep your credit inquiries low, so they don'tt impact your overall credit score.
To conclude…
Having an amazing credit score can be a gateway to wealth, however, bad credit can prevent you from achieving this. I understand that sometimes our own laziness or lack of knowledge can make it difficult to get started, but I'm here to help. If you would like to get some advice on how to repair your credit feel free to leave me a comment and I will be happy to assist you. If you need a professional credit repair company, I would recommend ASAP Credit Repair. We are a nationwide, family-owned and operated business and we offer a money back guarantee on almost every service we offer. Plus, we provide a free consultation and evaluation to all potential customers. To learn more, please visit our website at www.asapcreditrepairusa.com.