Hi there! My name is Joe Mahlow, and I have spent a considerable amount of time in the Personal Finance and Credit industry. I make it a point to share my knowledge on various topics that are important to my readers and followers. Today, I want to discuss Credit Repair for Free and answer some of the most commonly asked questions that I receive from my clients. Yes, it is absolutely possible to repair your credit for free. However, I would like to clarify that it does require quite a bit of work. Nevertheless, if you are willing to put in the effort, you can save yourself a substantial amount of money and time. So, let's dive right into it!
Table of Contents
Getting Credit Repair for Free: Is it Possible?How to Fix Your Credit for Free on Your OwnUsing Free Credit Repair SoftwareFree Credit Repair: How to Obtain and Use Credit ReportsCan Credit Repair Boost Your Credit Score?Wrapping it Up
Getting Credit Repair for Free: Is it Possible?
It is rare to find an entity, whether a person or a company, that is offering free credit repair services without any strings attached. In most cases, there is more to the story than what their advertisements suggest. It is unlikely that any business or individual is willing to repair your credit for free; there is always an underlying motive. For instance, when I started in the industry over fifteen years ago with zero clients, I had to offer some services for free to prove my expertise to people and to get their testimonials. In return, although my clients did not pay, they were required to give feedback. Currently, my company, ASAP Credit Repair, offers free credit repair services, but only for one round, and the client still has to pay the service fee to get started. You need to understand that when something is free, there is always a catch.You can still repair your credit for free on your own, but it requires your allocation of time. My recommendation is that you dispute your credit reports for free. However, you must be willing to set aside a minimum of one to two hours per month for the next three to five months to complete all the necessary steps for credit repair. If you do not have adequate time, I recommend seeking a credit repair service or company near you to assist you with the repairs. Credit repair services typically cost customers $400-600 on average to complete the credit repair work on their behalf.
How to Fix Your Credit for Free on Your Own
Repairing your credit is a doable task, although it can be somewhat time-consuming. It's crucial to note that disputing your credit reports online is not advisable. Through this method, you give up your legal right to dispute your credit report more than once within a year, and the dispute process is obsolete and generic, yielding less effective results.To fix your credit on your own for free, you should devote 70% of your time to researching and pulling your credit report while dedicating 30% of your time crafting up your credit disputes.
Here are the steps to follow for credit repairs:
1. Access your credit reports online.It's preferable to utilize a credit report provider such as IdentityIQ that presents the most available data so that you can identify all possible errors on your credit report.
2. Understand what disputing meansAs a consumer, you must acquaint yourself with two laws that protect your rights and give you guidelines to dispute your credit report – the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). You do not need to read them in their entirety; you only need to know what your legal rights are.
3. Draft up your dispute letterIgnore advice commonly found online. Creating a dispute letter via Google Docs or paper and pencil is a simple process. Look up the Credit Reporting Agencies' addresses - Equifax, Experian, and Transunion. Take note of the creditor's address at the bottom of your credit report and put it aside. Ensure that you provide your name, address, date of birth and the last four of your social in your dispute letter. Identify the account name and number that you are disputing and include a straightforward request that the account be validated by providing proof of authorization, such as a Credit Application, ledger balance history, and monthly billing statements. Conclude the letter and sign it.
4. Wait for 30 daysIf they do not provide proof of each disputed account via mail, send a secondary dispute letter via certified mail explaining your request. For charge-offs or collections, ask for the account to be deleted, whereas for accounts with late payments, request the late payment history be removed.
5. Rince and repeatRepeat the last step as many times as needed until you achieve your desired resolution. If you encounter difficulty, ASAP Credit Repair and other reputable credit repair firms can assist you.
Remember, when drafting up your dispute letters, simplicity is key. You may look up dispute template letters on Google to see structure examples, but avoid using template letters online.
Using Free Credit Repair Software
When I began my journey in the credit repair industry, the first thing I did was search for a tool to help me create dispute letters more effectively, which would facilitate streamlining the overall customer experience. I came across the credit repair cloud software, which has evolved to be the top option in the market for credit repair companies looking to assist their clients with their credit issues. Interestingly, this software isn't limited to businesses alone; individuals can also benefit from it. By offering a free thirty-day trial period, you can use their software to generate your dispute letter right away. This is an excellent secondary option for anyone who wishes to go through the credit repair process step-by-step and learn more about credit repair. Credit Repair Cloud provides an assortment of dispute letters, tactics, and dispute reasons that can be used to tailor your response to each account. In full disclosure, the free trial only allows you access to their first-round dispute letters. Thus, for a complete credit repair process, you will need to create the subsequent letters manually or upgrade the software. Explore the other available credit repair software options in the market to find the best fit for you. You can perhaps use your newfound knowledge to start your own Credit Repair Business and assist others in fixing their credit!
Free Credit Repair: How to Obtain and Use Credit Reports
In order to start repairing your credit for free, the most important thing you need is a copy of all three of your credit reports: Equifax, Experian, and Transunion. While later on, it may be important to dispute with other credit reporting agencies or the data furnisher, it's recommended to keep things simple and start with these reports.However, it's not just about accessing your credit reports to find any derogatory accounts you may want to dispute. You also need to know which credit report to use. Is there a preference? The answer is yes.Although there are various types of credit reports, not all are created equal. In general, most lenders focus on your Fair Isaac Corporation (FICO) report. While obtaining this report is expensive, it's important to gain access to the best Vantage score report. The Vantage score report is far cheaper and provides you with the same information as a FICO report.So which credit repair credit report is the best? In our opinion, IdentityIQ offers the best credit reports over any other credit monitoring site. Although the data feed is the same as other Vantage Scoring Reports, IdentityIQ offers more data that can help you identify errors on your credit report and get the best results.While it's not mandatory to use IdentityIQ, it's important to access all three credit reports from reputable credit monitoring sites. However, our clients have seen better results with IdentityIQ reports than with other traditional sites.
Can Credit Repair Boost Your Credit Score?
To put it simply, yes - credit repair can certainly help improve your credit score. However, it's important to note that while credit repair is a useful tool, it's by no means a panacea. Managing your credit well, paying bills on time, and having a solid credit history is also incredibly essential for continued credit score improvement. Many believe credit repair will solve all their credit issues. Unfortunately, the truth is that it's unlikely that an accurate account will be removed from your credit report unless there's an error in reporting. Here's how credit repair can help improve your score:
1. Removal of negative payment history or accounts will usually result in an increase in your credit score.
2. However, having positive revolving and installment accounts reporting is also vital. Without this, your score might only increase a little.
3. Good payment history on active accounts is the cornerstone of excellent credit scores. I recommend starting with a secured credit card if you need to build your credit.
Therefore, while credit repair is a highly effective tool to improve your credit score, it should be accompanied by other good credit management habits to ensure the best possible outcome.
Wrapping it Up
Throughout my 15 years in the industry, I have encountered many individuals who struggle to initiate the credit repair process due to a lack of knowledge. Instead of being paralyzed by inaction, it is crucial to take that first step forward. This can entail educating oneself about credit repair and writing the first dispute letter, or alternatively, considering hiring a credit repair company to take charge of the process. Regardless of the method chosen, it is essential not to remain complacent. By taking the initiative to address your credit today, you can potentially save thousands of dollars in interest payments over the next few years. In case you're not sure where to look for a credit repair service, you can always turn to ASAP Credit Repair for a free consultation and assessment- we understand the significance of helping clients restore their credit quickly.