Greetings! My name is Joe Mahlow, and I've been working in the Personal Finance and Credit industry for quite some time. I always look forward to writing informative posts on topics that many of you find important and useful. Today, I want to start by addressing a common question I receive from both current and previous clients - how to repair credit for free. I believe it's possible to accomplish this task, but I must warn you that it will require a lot of effort and hard work on your end. Nevertheless, if you're willing to invest your time and energy, the end result can help you save both money and time. So, let's dive right in!
Table of Contents
Getting Credit Repair without Paying: Is it Possible?Ways to Repair Your Credit for FreeUsing a Credit Repair Software for FreeObtaining a Free Credit Repair ReportCredit Repair Boosts Your Credit Scores, But It's Not The Immaculate Solution.Wrap-Up: Take the Initiative to Repair Your Credit Today
Getting Credit Repair without Paying: Is it Possible?
If someone says they can help you fix your credit for free, chances are there’s a catch. No individual or company will willingly repair your credit without expecting something in return. When I first entered the credit repair market 15 years ago, I had no clients. To gain exposure and show people that my services were effective, I started offering free services. However, in exchange, I asked my clients for reviews and testimonials so that I could strengthen my reputation. Today, ASAP Credit Repair, my company, still offers one round of credit repair services completely free of charge. If you choose this option, you need to register and pay the service fee to get started. Essentially, free credit repair is not truly free.If you have the time and energy, you can repair your credit for free by disputing your credit reports. Be warned; however, you need to be willing to spend at least a couple of hours every month for the next three to five months to complete the steps required for credit repair. On the other hand, If you do not have the time to repair your credit on your own, engaging the services of a credit repair firm is your best bet. This may cost you anywhere between $400-$600, on average, but it is worth the investment if you end up with a higher credit score in the end.
Here are a few key points to remember:
- Free services usually come with strings attached, so be cautious.
- Credit repair can be done for free if you are willing to work hard, but it takes time.
- It's important to budget the cost of credit repair if you decide to hire a credit repair service.
Ways to Repair Your Credit for Free
If you want to repair your credit for free, there is good news and there is bad news. The good news is that repairing your credit on your own is easy, but it is also time-consuming. The bad news is that online credit repair disputes are not helpful. If you want to dispute your credit report more than once time in a year, then do not make the mistake of doing it online. The dispute process is outdated and generic, and there is nothing to guarantee effective results.The process of credit repair involves 70% research and credit report pulling and 30% drafting of credit disputes. Here are the simple steps you need to follow to repair your credit on your own for free:
1. Access your credit reports online. Consider using a credit report provider that provides all possible data, such as Identity IQ.
2. Understand what disputing means. Even though you do not need to read the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA), you must understand your legal rights as a consumer.
3. Create your own dispute letter. Ignore online gurus and create your dispute letter using Google Docs or pencil and paper. Obtain the addresses of the Credit Reporting Agencies Equifax, Experian, and Transunion. Use the creditor's address at the bottom of the credit report, and provide your name, address, date of birth, and last four of your social. Identify the account name and account number you are disputing and request that the account be validated. Conclude the letter and sign it.
4. Wait for 30 days. If they do not provide the proof of each account you disputed via mail, send a secondary dispute letter via certified mail.
5. Rince and Repeat. If you don't get the resolution you want, keep sending dispute letters. You may also consider reaching out to reputable credit repair firms such as ASAP Credit Repair.
Remember to keep your dispute letter simple and to the point. You can Google dispute template letters to see what a structure looks like, but do not use any template letter online.
Using a Credit Repair Software for Free
As a newcomer in the credit repair industry, my first endeavor was to find a tool that would aid me in drafting persuasive dispute letters and simplify the experience for my clients. The Credit Repair Cloud software was the only viable option available then, and it has since gone through several upgrades. Though the software was developed to assist credit repair firms in fixing their clients' credit, it is also available for personal use. A free 30-day trial is offered that enables you to generate your first dispute letter. This second option is remarkable if you want to repair your credit free of charge since it gives you the ability to go through the credit repair process from beginning to end and provides excellent information about credit repair. Credit Repair Cloud provides a variety of dispute letters and tactics to use, and there are several dispute reasons to assist you in customizing your response to the account in question. However, if you use only the free version, you will be limited to the 1st round dispute letters, and you will have to generate your future round letters manually or purchase a software upgrade to complete the credit repair process. You may browse through the other credit repair software options available on the market, of which there are roughly 10, to determine which one best suits your needs. Once you have mastered the process, you may establish a Credit Repair Business to assist others in repairing their credit.
Obtaining a Free Credit Repair Report
A crucial aspect of repairing your credit for free is obtaining copies of all three credit reports from Equifax, Experian, and Transunion. It is important to remember that as you learn more about credit repair, you will want to dispute with all available credit reporting agencies and data furnishers. However, it is recommended to keep it simple when starting out. Accessing your credit reports is essential not only to determine the derogatory accounts to list in your disputes but also to determine which credit report to use. Is there a preference?Answering this question simply: yes. Various types of credit reports are available, but not all are created equally. In general, lenders who approve a loan will pull your Fair Isaac Corporation (FICO) report. Though obtaining your FICO report is quite costly, it is essential that you obtain the best Vantage score report, as it is cost-effective and provides the same data as a FICO report.To identify the most effective credit repair credit report, we recommend IdentityIQ. IdentityIQ provides the best credit reports in comparison to other credit monitoring sites. While the data feed that provides this information is similar to other Vantage Scoring Reports, IdentityIQ provides additional data, which helps identify more errors on your credit report, ultimately giving you the best results. Although using IdentityIQ is not mandatory, our clients have experienced better results in comparison to any other traditional site by accessing all three credit reports from a reputable credit monitoring site.
Can Credit Repair Boost My Credit Score?
In short, yes, credit repair can help improve your credit score. However, it's important to understand that credit repair is just one of the tools available for improving your credit scores. Equally important is managing and maintaining a solid payment history and established credit to continue advancing your credit scores. Too often, people believe that credit repair will solve all their credit problems, but unless an account has inaccurate information or is affected by reporting errors, it is unlikely that an accurate account can be removed from a credit report.
So, what exactly does credit repair help with regarding credit score improvement?
- The removal of negative payment history or negative accounts can almost always lead to an increased credit score. However, since a credit score increase may be minimal without positive revolving and installment accounts reporting as well, it's important to maintain good payment history on active accounts.
- One of the most important things you can do to preserve excellent credit is to have established credit. If you're limited on credit and need to build credit, it's highly recommended to start with a secured credit card, which helps establish credit rapidly.
The bottom line is that although credit repair is a highly effective tool, ensuring that you have established credit, making payments on time, and keeping credit card balances at or near zero dollars at all times can help guarantee that the credit repair has the most significant impact on your credit scores.
Wrap-Up: Take the Initiative to Repair Your Credit Today
After spending 15 years in the industry, I have come across many people who are hesitant to initiate the process of credit repair because of a lack of guidance. Taking the first step towards repairing your credit is vital, and it can be achieved in two ways: by learning about credit repair and creating your first dispute letter or by seeking out a credit repair company to handle all the work for you. However, inaction and complacency will not benefit you. Starting to repair your credit today will save you thousands of dollars in interest paid over the next few years. If you are unsure about how to find a trustworthy credit repair company, we recommend visiting ASAP Credit Repair for a free consultation and evaluation. Our experienced team is committed to helping clients quickly repair and restore their credit.