Hi there! My name is Joe Mahlow, and I am a Personal Finance and Credit expert. I love sharing my knowledge through writing posts on topics that are important to my followers. Today, I want to talk about Credit Repair for Free and answer some of the questions I frequently receive from my clients. The truth is, you can repair your credit for free, but it does require quite a bit of work. However, if you're willing to put in the time and effort, it can save you a lot of money in the long run. So, let's dive in!
Table of Contents
Getting Credit Repair for FreeTips for Free Credit RepairCan Free Credit Repair Software Help You Fix Your Credit?Obtaining Free Credit Repair with a Credit ReportCan Credit Repair Help Improve My Credit Score?Tips for Initiating Credit Repair
Getting Credit Repair for Free
When a company or person offers free credit repair, there is usually a catch to their offer. No one can repair your credit without expecting something in return. When I started working in the credit repair industry 15 years ago, I offered some of my services for free to attract clients. Although my services were complimentary, I was still looking for testimonials and reviews from those clients. Today, my company, ASAP Credit Repair, still offers one round of free credit repair, but clients must pay a service fee and enroll in the program to take advantage of the offer. Remember, free services always come at a cost.If you want to go the DIY route with credit repair, you can dispute your credit reports for free, but you must allocate sufficient time to follow all the necessary steps. I suggest setting aside at least 1-2 hours per month for 3-5 months to complete the entire credit repair process. If you cannot find time to repair your credit on your own, your best option is to seek help from a credit repair service or company near you. Typically, credit repair can cost customers between $400 and $600 for comprehensive credit repair work.
Tips for Free Credit Repair
If you want to repair your credit without professional help, it is an achievable task, although it may take some time. To start with, never dispute your credit reports online, as this could limit your legal right to dispute errors on your credit reports more than once per year. Also, producing credit disputes online through generic and outdated dispute processes would not give effective results. The majority of the credit repair process involves research and pulling up your credit report, which is around 70%, while the remaining 30% is dedicated to drafting up credit disputes. Follow these simple steps for credit report repair:
1. Access Online Credit ReportObtain your credit reports online via a credit report provider that provides the most available data so you can find all the possible errors on your credit report. A recommended credit report provider is Identity IQ.
2. Understand Credit DisputesFamiliarize yourself with two laws that protect you as a consumer and define the guidelines for disputing errors on your credit reports, the Fairy Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). Understanding these laws will help you to know your legal rights as a consumer.
3. Draft up a Dispute LetterDo not rely on any advice from online "gurus." Create your dispute letter either via Google Docs or handwrite it on paper in a simple structure. Google addresses of Credit Reporting Agencies (Equifax, Experian, and Transunion), put off to the side the creditor’s address at the bottom of the credit report, identify the account name and account number you are disputing, write your full name, address, date of birth, and last four digits of your social security number, then write the body of the paragraph. The body of the paragraph should be simple and contain a request that the account be validated by providing evidence of authorization, such as a Credit Application, ledger balance history, showing all payments made on the account with dates and times, and all monthly billing statements provided since the opening of the account. Finally, conclude and sign the letter.
4. Wait for 30 DaysWait for 30 days to receive a response. If no proof is provided for each account you disputed via mail, send a secondary dispute letter via certified mail stating that your request was not granted and that you want the account deleted (if it’s a charge-off or collection) or want the late payment history removed (if it’s an account with late payments).
5. Repeat Until SatisfiedRepeat the process repeatedly until the desired resolution is achieved. If you encounter any difficulties, it is always recommended to enlist the assistance of ASAP Credit Repair or another reputable credit repair firm.
Remember to keep your disputes simple and to the point. You can search for dispute template letters online to use as a structure but do not use them in their entirety.
Can Free Credit Repair Software Help You Fix Your Credit?
As someone who started in the credit repair industry, my first focus was finding a tool to create dispute letters that streamline the customer experience. While the market has several options, a popular choice is the Credit Repair Cloud software, initially designed to aid credit repair businesses in helping clients fix their credit. However, individuals can also benefit from its offerings via a free 30-day trial. In addition to generating your first dispute letter, you can access useful information on credit repair, including different dispute letters and tactics, as well as dispute reasons. The software allows you to go through the credit repair process step-by-step, but be aware that the free trial only includes 1st round dispute letters. If you want to complete your credit repair journey, you'll need to create your future dispute letters manually or pay for an upgrade. Consider exploring the other ten credit repair software options available before making a decision. Once you've succeeded in fixing your own credit, perhaps you can build a career out of helping others.
Obtaining Free Credit Repair with a Credit Report
Acquiring a copy of your Equifax, Experian, and Transunion credit reports is essential to commence your free credit repair journey. While it is best to dispute inaccuracies with all three bureaus and data furnishers, it is advisable to keep it simple and start with one report. It is crucial to analyze your credit reports thoroughly to identify derogatory accounts that require dispute. However, it is also important to determine the best credit report based on lender preference and cost.Although FICO reports are the most commonly used by creditors, they are costly and typically unnecessary until the end of the credit repair process. Hence, obtaining the best Vantage score report is recommended, as it is cheaper and provides equivalent data. In this case, IdentityIQ is the top choice for credit repair credit reports as it offers more comprehensive data compared to other credit-monitoring sites, enabling easier identification of errors in your credit report and consequently yielding better results.While we suggest using IdentityIQ, it is not mandatory, provided you access all three credit reports from a reliable credit monitoring platform. However, our clients have consistently achieved better results with IdentityIQ reports than any other traditional site.
Can Credit Repair Help Improve My Credit Score?
Yes, credit repair can help improve your credit score. However, it is important to note that credit repair is just one tool in the process of improving your overall credit health. It is also crucial to have a strong and consistent positive credit history in order to continue advancing your credit score. While credit repair may not completely solve your credit issues, it can assist in addressing certain areas. Here are some things credit repair can help with:
1. Removing negative payment history or negative accounts can boost your credit score.
2. Positive revolving and installment accounts reporting along with credit repair, can help increase your credit score.
3. If you need to build credit, consider starting out with a secured credit card.
It is essential to maintain great credit by paying your bills on time and keeping your credit card balances close to zero to maximize the benefits of credit repair. Therefore, while credit repair is a highly effective tool, it should be used in conjunction with other positive credit practices.
Tips for Initiating Credit Repair
After 15 years in the industry, I've seen many individuals who lack the necessary initiative to begin the process of credit repair because they are unaware of what steps to take. It is best to take just one step forward and take action, such as learning about credit repair and crafting your first dispute letter or seeking a credit repair company to do the work for you. Rather than becoming indifferent and idling by, it is essential to take action. Fixing your credit today will save you thousands of dollars in paid interest in the next few years. If you are unsure where to begin when looking for a credit repair firm, please check out ASAP Credit Repair for a free consultation and assessment. We understand the importance of rapidly assisting our clients in repairing and restoring their credit.