If we haven't met yet, my name is Joe Mahlow, and I've spent a considerable amount of time in the Personal Finance and Credit space. I really enjoy diving into different topics that are important to my readers, as well as those who follow my content. Today, I'm excited to touch on a topic that I get a lot of questions about from current and former clients: Credit Repair for Free. While it is possible to fix your credit without spending a dime, I want to be upfront about the fact that it will require a lot of effort on your part. However, if you're willing to put in the time and energy, you can absolutely save yourself money and time in the long run. So, without further ado, let's dive in.
Table of Contents
Getting Credit Repair for Free - Is it Possible?How to Repair Your Credit for Free on Your OwnUtilizing Free Credit Repair SoftwareObtaining Credit Reports for Credit RepairCan Credit Repair Boost My Credit Score?Let's Conclude the Topic!
Getting Credit Repair for Free - Is it Possible?
Many companies may advertise free credit repair services, but the truth is that there are usually some hidden terms and conditions. No one is likely to offer free credit repair services without any benefits or profits in return. When the writer started working in the credit repair field 15 years ago, he provided free services to some clients to gain testimonials or reviews in return. Even today, his company ASAP Credit Repair offers free credit repair services, but the client is required to enroll and pay the service fee. In short, nothing is ever truly free.That being said, it is possible to repair your credit for free, but you will have to invest your time and effort. One recommended approach is to dispute your credit reports on your own, which can take around 1-2 hours per month for 3-5 months. However, if you don't have the time or expertise for credit repair, finding a professional credit repair service or company may be a better option. Usually, the cost of hiring a credit repair service or company ranges from $400-600.
How to Repair Your Credit for Free on Your Own
Repairing your credit on your own may require a significant investment of time and effort; however, it is a procedure that is not as tricky as many think. A crucial tip to keep in mind is to avoid disputing your credit reports online. By submitting your credit reports online, you sacrifice your legal right to dispute your credit report more than once a year. Furthermore, the dispute process is outdated and generic, making it challenging to achieve desirable outcomes.In my opinion, the credit repair process is 70/30, where 70% of the time is dedicated to researching and pulling your credit report, while 30% is dedicated to drafting your credit disputes. To help you simplify the process, here are the steps to follow whenever you want to repair your credit on your own for free:
1. Access your credit reports online: Use a credit report provider that provides the most readily available data to uncover all the possible errors on your credit report. A recommended platform is Identity IQ.
2. Understand what disputing involves: You need to become familiar with two laws (Fairy Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA)) that safeguard you as a consumer and provide guidance on how to dispute your credit report.
3. Draft your dispute letter: Disregard any advice that does not align with the process below. Google the Credit Reporting Agencies Addresses (Equifax, Experian, and Transunion) and jot down the Creditor's Address at the bottom of the credit report. Write your name, address, date of birth and the last four digits of your social. Identify the account name and account number you wish to dispute before composing your argument. Request that the account be validated by providing proof of the account authorization, such as a Credit Application, ledger balance history with all payments made on the account with dates and times, and all monthly billing statements since the account's opening. Sign off the letter and wait for 30 days.
4. Wait for 30 days: If you do not receive proof of your dispute documents via regular mail, send a follow-up dispute letter via certified mail indicating that you did not receive the documents requested. Request the account deleted (if it's a charge-off or collection) or the late payment history removed (if it's an account with late payments).
5. Rinse and Repeat: Repeat step 4 until you get the desired resolution. If you get stuck, seek help from reputable credit repair firms like ASAP Credit Repair.
Remember to keep your dispute simple and concise while avoiding online templates. You may consult dispute template letters on Google for direction.
Utilizing Free Credit Repair Software
As I embarked on my journey in the credit repair industry, I searched for a tool that could facilitate the generation of persuasive dispute letters, streamlining the overall process for my clients. At the time, the only option available was the credit repair cloud software, which has evolved over time to cater to the needs of credit repair companies and individual users alike. The software offers a free 30-day trial, allowing you to produce your initial dispute letter. This is a great alternative for those interested in free credit repair, as it guides you through the process step by step and provides valuable information on credit repair. With Credit Repair Cloud, you can access a variety of dispute letters and tactics to help you customize your approach to the specific account. It is important to note, however, that the free trial only provides access to their 1st round dispute letters. To complete the credit repair process, subsequent rounds of dispute letters must be manually created or the software upgraded at a cost. Remember to explore other credit repair software options, as there are approximately ten alternatives on the market, to find the one that best suits your needs. Perhaps after mastering this process, you could establish yourself in the credit repair business and assist others in fixing their credit.
Obtaining Credit Reports for Credit Repair
In order to repair your credit for free, you need to obtain copies of all three credit reports - Equifax, Experian, and TransUnion. It's recommended to keep it simple when starting out and dispute with all available credit reporting agencies and data furnishers as you learn more about credit repair. Accessing your credit reports is essential so that you can identify any derogatory accounts that need to be listed in your disputes.The next important question is which credit report to use. The short answer is that the Fair Isaac Corporation (FICO) report is preferred by most lenders who approve loans. However, due to its high cost, it's recommended to obtain this report towards the end of your credit repair services. Instead, the best Vantage score report is important to access as it's much less expensive and provides the exact data as a FICO report.When it comes to credit repair credit reports, IdentityIQ is considered the most effective one due to the additional data it provides. Although other credit monitoring sites use the same data feed that provides Vantage Scoring Reports, IdentityIQ goes further to help identify more errors on the credit report, resulting in better outcomes. While it's not mandatory to use IdentityIQ, clients have seen the best results with their reports compared to other traditional sites.
Can Credit Repair Boost My Credit Score?
In short, credit repair can be helpful in improving your credit score, but it is only one of several tools available to achieve this goal. While credit repair can help eliminate negative payment history and accounts, it is equally important to maintain positive payment history and good credit standing to keep advancing your credit score. Contrary to popular belief, credit repair is not a panacea that can resolve your credit issues instantaneously unless there are inaccuracies or reporting errors. That said, credit repair can help boost your credit score by:
- Removing negative payment history or negative accounts from your credit report, which tends to increase your credit score.
- Maintaining positive revolving and installment accounts reporting on your credit report while eliminating negative accounts or payment history.
- Developing a good payment history on your existing accounts.
- Establishing credit by starting out with a secured credit card, which can help you build your credit score quickly.
In summary, while credit repair is an effective tool to improve your credit score, maintaining your credit standing, making timely payments, and keeping your credit card balances low is essential in ensuring that credit repair has the maximum impact on your credit scores.
Let's Conclude the Topic!
Throughout my 15 years in the industry, I have come across various people who, due to lack of knowledge, lack the drive to initiate the credit repair process. I suggest taking one step at a time, whether it entails learning about credit repair or drafting your first dispute letter and beginning with taking action. Alternatively, you could consider hiring a credit repair firm to do all the work for you. However, do not settle for inactivity. Taking the initiative to fix your credit today can save you thousands of dollars in paid interest over the years. If you are unsure of where to begin your search for a credit repair company, consider checking out ASAP Credit Repair. We offer a free consultation and evaluation and prioritize helping our clients restore their credit as soon as possible.