If we haven't met, I'm Joe Mahlow, and I've spent a significant amount of time in the Personal Finance and Credit industry. It's become a passion of mine to create informative posts on topics that my followers and clients find valuable. I'm excited to delve into the topic of Credit Repair for Free and address some of the common questions I hear from my clients. Though it's possible to repair your credit for free, I want to be transparent in saying that it requires effort. However, if you're willing to put in the work, it can be a rewarding and cost-effective way to improve your credit. Let's jump right into it.
Table of Contents
How to Obtain Free Credit Repair ServicesTips for Free Credit RepairUsing Free Credit Repair SoftwareFree Credit Repair: Importance of Credit ReportCan Credit Repair Boost My Credit Score?Wrap it Up: Taking the Initiative to Repair Your Credit
How to Obtain Free Credit Repair Services
Obtaining free credit repair services is often not as straightforward as advertised. No person or entity is willing to provide free credit repair services without expecting something in return. When I first ventured into the credit repair industry 15 years ago, I offered free services to gain clients and establish my credibility within the industry. However, even then, I requested that clients provide testimonials or reviews of my services. Today, my company ASAP Credit Repair, still offers a round of free services, subject to a service fee and enrollment requirements. Ultimately, "free" credit repair services always come with a cost.Alternatively, you can take the initiative to repair your credit for free, albeit requiring significant time investment on your part. I suggest that you start by disputing errors on your credit report, which is a free process. However, doing so requires you to allocate at least 1-2 hours per month for the next 3-5 months to complete all necessary steps for credit repair. If you lack the time required for credit repair, I recommend finding a credit repair service or company near you to assist you with the process. On average, credit repair services cost customers between $400-600 to have someone do all the credit repair work on their behalf.
Tips for Free Credit Repair
Repairing your credit on your own requires time and effort but is manageable. Your first step is to avoid disputing credit reports online and make sure you do not limit your legal right to dispute your credit report more than once a year. Twenty-seven percent of your time should be spent on drafting credit disputes, while the remaining 70 percent should be spent researching and obtaining a copy of your credit report. The following steps provide a summary of what you can do to repair your credit for free:
1. Access your credit reports onlineConsider using a credible credit report provider like Identity IQ that offers a range of data to enable you to find all possible errors on your credit report.
2. Understand the meaning of disputingIt is essential to know the two legal statutes that protect consumers and highlight the aspects in which you can dispute your credit reports—The Fair Debt Collection Practices Act (FDCPA) and The Fair Credit Reporting Act (FCRA).
3. Draft your dispute letterIgnore the advice of self-proclaimed gurus and create a clear and concise dispute letter from scratch. Identify the creditor's address, and provide your information, account name, and number to make a request. Also, request for the account to be authenticated and backed by a credit application, the ledger balance history, a record of all transactions, and monthly billing statements. Sign, conclude, and wait for 30 days.
4. Wait 30 daysIf you receive no response, send a second dispute letter via certified mail. Explain that no documents were received requesting deletion of the account (if it is a charge-off or collection) or removal of the late payment history (if it is an account with late payments).
5. Rinse and repeatRepeat step 4 several times if you do not get the resolution you desire. Considerconsulting reputable credit repairs like ASAP Credit Repair if you get stuck. Remember to keep it simple and to the point when drafting disputes; use Google search for guidelines on the structure of the letter but refrain from using template letters online.
Using Free Credit Repair Software
When I first entered the credit repair industry, I searched for a tool to create effective dispute letters, streamline my customer service, and enhance my overall experience. The Credit Repair Cloud software, which was initially designed to help credit repair companies, was the only available option and has since evolved. Nonetheless, individuals can benefit from it as well. In fact, they provide a free 30-day trial where you can conveniently use their software to produce your first dispute letter. This option is an excellent choice for those seeking to manage their credit repair for free. The Credit Repair Cloud provides step-by-step guidance in the credit repair process and an array of information on credit repair in general. They also offer varied dispute letters and tactics, as well as dispute reasons, to enable the customization of your dispute responses to the account in question. However, if you rely exclusively on the trial version, the platform only allows access to its 1st round dispute letters. Therefore, to complete the credit repair process, you would have to manually devise future-round letters or pay to upgrade the software. Explore the market for other credit repair software and determine the most suitable option for you. Once you have mastered the process, perhaps you can establish a credit repair firm and assist others in fixing their credit!
Free Credit Repair: Importance of Credit Report
In order to begin repairing your credit for free, it is essential to have a copy of all three credit reports (Equifax, Experian, and Transunion.) It is recommended that you start with one credit reporting agency and gradually move on to others.Accessing your credit reports is very important, as it will enable you to determine the derogatory accounts that require disputing. However, it is equally crucial to know which credit report to use. Although all credit reports are not created the same, the Fair Isaac Corporation (FICO) report is the most preferred by most lenders.Nevertheless, due to the high cost of accessing this report, it is best to obtain the Vantage score report, which is significantly less expensive and provides the same exact data as a FICO report. IdentityIQ is highly recommended for the best credit report as they provide more data than any other credit monitoring site, resulting in the identification of more errors on your credit report for optimum results.While using IdentityIQ is not mandatory, accessing all three credit reports from a reputable credit monitoring site is essential for effective credit repair.
Can Credit Repair Boost My Credit Score?
In brief, yes. However, it's important to note that credit repair should be viewed as just one of many tactics you can potentially employ to improve your credit score. In order to continue advancing your credit scores, it's important to manage and maintain great established credit and payment history. Some people assume credit repair can solve all of their credit issues, but the reality is that removing an accurate account from your credit report is slim to none.
So, what can credit repair actually help with in terms of improving your credit score?
1. Removing negative payment history or accounts can often help increase your credit score.
2. Nevertheless, in addition to removing negative information, it's crucial to have positive revolving and installment accounts reporting as well. Failure to do so may limit your credit score increase projection.
3. Positive payment history of your active account is one of the most important things you can do to maintain amazing credit.
4. If you're looking to build credit, a secured credit card is a great way to start building credit fast.
In conclusion, while credit repair can be remarkably effective in improving credit scores, it's important to couple it with maintaining a solid credit history and payment schedule and keeping credit card balances close to zero dollars at all times for maximum impact.
Wrap it Up: Taking the Initiative to Repair Your Credit
After spending 15 years in the credit repair industry, it is disheartening to see how many people struggle to take the first step toward credit restoration. But here's the truth: you don't need to have everything figured out to get started. Whether you decide to educate yourself about dispute letters or enlist the help of a professional company, it's essential to take the initiative to improve your credit score. Doing so can save you substantial amounts of money in interest paid in the years to come. If you're unsure where to begin or searching for a reliable credit repair service, you can count on ASAP Credit Repair for a free consultation and evaluation. We understand the significance of fast credit repair and the positive impact it can have on people's lives.