If you’ve been researching different credit repair companies, you may have heard them talking about how they can “fix credit errors.”  But when your credit, money and time are all on the line, you’d think that these companies would want to tell you a little more about what they actually do.

So What Do Most Credit Repair Companies Do?

Actually, there’s an industry term for most of these guys—they’re called dispute mills. Dispute mills are credit repair companies that attempt to remove as much negative information from credit reports as possible by sending dispute letters to credit bureaus.  And that’s about it.  Dispute letters, of course, are intended only to fix reporting errors (and not just to remove a lifetime’s worth of bad credit).  And the problem with dispute mills is that they’ll often dispute credit report information whether it’s accurate or not. 

Can You Really Fix Bad Credit With Dispute Letters Alone?

In most cases—not a chance.  That’d be like trying to build a whole house with just a hammer.  Real credit repair involves a combination of different approaches.  What works in one situation may not work as well in another.  Dispute letters may or may not be a part of the process, and they may or may not be combined with other services like debt relief.  Whatever the scenario, truly effective credit repair is a result of flexibility, planning, and action.  Unfortunately, dispute letters can’t cover everything. Not even close.

So How Can I “Fix” My Credit?

This can be easy.  It involves five steps.  In short, they are:

1. Review your credit report—how will you know what you need to fix if you don’t know what’s on there? Study it.  Make sure it’s accurate and complete.  Get an idea of what your challenges are going to be and how you might address them. 

2. Fix credit errors—a big part of the reason you should review your credit report is to spot potential errors.  And they’re common—about 79% of all credit reports have mistakes.   So if they’re there, find them and contact the appropriate credit bureau, collection agency or creditor to have them corrected.

3. Reduce your debt—it may seem impossible, but it’s not.  With debt settlement, you can negotiate reductions to your debt by up to 60%.  Find out who you owe, how much you owe them, give ‘em a call and make an offer.  Chances are, they’ll be willing to reduce your debt down to an amount you can actually afford.

4. Establish new lines of credit—it’s one of the best ways to put that finishing touch on your new credit profile and a very effective way to raise your credit score.  Regardless of your credit history, shouldn’t have much trouble finding someone to give you a second chance with credit.

5. Manage your credit responsibly and let it age— One of the best ways to optimize your credit is to let it age.  So hold on to it.  Practicing the same financial responsibility that helped fix your credit will also help you to maintain it appropriately.  And the longer you show good faith and responsibility, the more credit-worthy you’ll be.

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3. Fix Credit: Quick Solutions Aren’t Always Best

Looking back on your credit history and current financial situation, can you say you’re proud of the decisions you’ve made? Is your success with credit everything you’ve always wanted to be?  Do you ever wonder if it’s possible to fix credit problems and restore your financial health?

If you’re not happy about what’s become of your personal credit, you can turn things around.  Most of the time, the only thing that holds people back from fixing credit problems is their attitude towards money and responsibility.  Realizing the importance of good credit is the first (and maybe the most important) step toward change.

What Is Bad Credit Doing To You?

Are you having a hard time getting a credit card or a loan?  With bad credit, these kinds of problems are just the beginning.  These days, it seems like everyone’s running a credit check.  If you want to rent an apartment or house, establish utility accounts, set up a cell phone contract, find yourself a decent job or just save some money on interest rates, bad credit is going to make it difficult (if not impossible). 

But there’s more.  Bad credit can have an effect on your relationships, emotions and overall health.  Having to hide your “secret” credit situation from the world can make you feel isolated, unimportant, and unstable.  It can (and probably will) lead to stress, anxiety and depression.  And not having adequate financial resources can leave you deprived of even your basic needs and wants.  So can you think of one good reason to let your credit problems continue to run your life?

There’s a Solution to Your Credit Problems

Think about it.  Your life has more meaning than a bundle of lousy credit problems.  And the less effort you put into eliminating these problems, the more control they’ll have over you.  And what are they—some old, unpaid bills?  In the grand scheme of things, paying off a few debts, making a few corrections to your credit report, and having a little responsibility with your money is a very small price to pay for the rewards you’ll gain through having good credit.  So why waste anymore time?  It’s not as hard as you think.  In fact, there is a very simple, straightforward approach to fix credit, and anyone can have success with it.  Even you.

So cast your doubts aside.  Learn more about credit repair and what it can do for you.  There’s no risk, and there’s really no reason not to.  Like thousands of others, you’ll see just how easy credit repair can be, and how it can help you to turn everything around, once and for all.

Related posts:

1. There’s No Magic to Fixing Credit

How often we've heard that credit repair is a scam, that it's not worth the trouble, or that it's downright unethical.  And while it's unfortunate that the more "illegitimate" credit repair companies have all but ruined the industry–we're proud to say that there is a very realistic, very effective, and very honest way to fix bad credit.

But first let's talk about what "credit repair" means to alot of these other companies.

How are Most Companies Fixing Bad Credit?

Perhaps the reason so many credit repair companies claim their services to be "fast" and "easy" is because they take so many short-cuts.

A common approach to dealing with negative credit reports is to send dispute letters to the credit bureaus and collection agencies, in hopes of getting as many removals as possible. 

And what's the problem with that?  It's ineffective at best and illegal at worst. 

Dispute letters are intended strictly for the purpose of having credit report errors corrected.  Any time a credit repair company disputes accurate credit report information, they are operating unlawfully and can add further complications to your credit situation. 

In some cases, disputing accurate information can even get you sued. 

So What's the Alternative? There's more than one way to fix bad credit.  But Dispute letters alone will not entirely resolve your problems.  That's why following a few simple steps can take you a long way in the credit repair process.

Remember that every credit situation is different–what works for others may not be the best option for you. But one way or the other, the laws that govern consumer credit and and the credit repair industry provide ways for you to gain conrol of your financial problems and get your credit back on track. 

So here they are…

The 5 Steps to Fixing Bad Credit that Anybody Can Follow

Step One:  Start A Working Budget It should be no surprise to hear that managing your money responsibly is the only way to establish a good credit history.  So if that's your goal (as it should be) then why put it off any longer?

The very best way to get things in order is to start budgeting–now!  Not only are you going to need some extra cash to pay off your old debts during the credit repair process, but you're going to have to have a handle on your money after you establish new lines of credit. 

Don't put it off–watch what you spend.

Step 2:  Get Familiar with Your Credit Report If you're going to fix your credit, you first have to know what's wrong with it–and that's pretty easy. 

Get a copy of your credit report (you can get it for free) and look over it carefully.  It should identify everyone you owe, how much you owe them, and the status of each account, etc., etc.  This, of course, is the only way to determine the approach you intend to take to resolve these problems, and therefore, getting familiar with your credit report should be a priority.

Step 3:  Have Fun Correcting Mistakes Correcting mistakes on your credit report can be fun–if you like writing dispute letters.

If you notice any errors on your credit report, you'll have to dispute it if you want to make it right.  This, as mentioned, is where many credit repair companies go wrong. 

Dispute letters do work, but they usually only work if they're intended to correct errors.  For all problems that dispute letters can't resolve, you'll have to take a different approach–and many of these companies do little beyond disputes.

Step 4:  Reduce the Heck Out of Your Debt After you've managed to ensure an accurate credit report, you may be wondering what you can do about all those unpaid debts and collection accounts.  And while getting yourself out of debt may seem impossible, learning how to negotiate debt-settlements can make it happen. 

A debt settlement occurs when a collection agency or creditor agrees to settle your debt for a reduced amount–an amount you can afford to pay.  And it works.  Our debt-relief specialists, on average, are able reduce most debts by as much as 60%.  So who says getting out of debt's impossible?

Step Five:  Establishing New Credit (and not screwing it up) so at this point you've learned to budget your money, you've conquered all credit report errors and you've managed to pay down your debt.  Your credit score has made a noticeable improvement, but you're still not experiencing the results you'd imagined.  Well, throw some new credit into the mix and relax.

You've done your part.  Your credit has improved, and it's going to get better.  Establishing new lines of credit is the best way (and the last step) to fixing bad credit.  And with proper management, you'll never have to worry about having bad credit again. 

For the Record… Credit repair is not a scam.  It's not ineffective, and it's not dishonest–or at least it doesn't have to be.  If you're worried about the troubles that can be caused by choosing the wrong company, do the smart thing and make sure you choose the right company.  There's just no room for short-cuts when it comes to credit repair–so stay away from the guys who can't offer a well-rounded, fool-proof approach to your credit problems.

Take the first step
Find out how My Credit Group Inc. can help turn your problems around – Sign up today.
No credit card needed and our service is backed with a risk-free refund policy