The major difference between the development of credit and the repair of credit is that the development of credit is an entire process dedicated to bettering your status as an individual, while credit repair is only one part of that process. Used alone, the repair of credit provides an empty and incomplete service that excludes a vital part of that system – the knowledge to protect and secure your basic needs so that you can move beyond them.
Both of these processes include a dispute process to delete information that is old, contains errors, and is inaccurate, while also updating your personal information. Individuals and companies who offer credit repair services charge a standard market price of five-hundred dollars, and need you to guide them as to which entries you want to dispute.
Spring Cleaning in credit development begins with an analysis of your credit profile, the format of both online and hard copy credit reports, and the construction of dispute letters based on that information. This process boosts credit scores in 45 – 60 days by deleting negative data. This process should be done on your credit reports ideally one time with the proper skill base to create excellent credit after that.
Repair is often done for an individual through letters written to the credit bureaus, without teaching the client any skills on how to do this process him/herself. During the spring cleaning process, individuals are taught how to write these dispute letters, are provided letter samples, while analyzing an individuals specific credit reports.
Our troubled economy is failure oriented, which means that individuals can only use repair when their credit is bad. In reality, a service that waits for things to go wrong before it can begin working isn’t much of a service at all.
The development of personal credit helps individuals no matter what standing they have. The key is to achieve excellent credit based on what FICO sees as excellent. If we don’t have the correct standards in mind to shoot for, we continue to strive for a standard that isn’t set high enough.
Repair has created an idea of good credit that isn’t accurate, and because of that, it throws off our goals and aspirations in order to keep them in line with a false scale.
If you ask a person with bad credit what they consider good, they will more than likely tell you 600 FICO scores. FICO states that a score of 600 is considered ‘very high risk.’ As a matter of fact, you don’t reach average or acceptable scores until your credit scores are in the 660 – 720 credit range. Good credit doesn’t begin until scores reach 721 or better.
The idea is to create protections and securities for our credit standings as well as our basic needs in order to work on the lifestyles we desire to have.