If we haven't had the pleasure of meeting, my name is Joe Mahlow, and I am passionate about Personal Finance and Credit. Through my content, I write about various topics that not only pique my interest but are also important to my followers. Today, I want to discuss Credit Repair for Free, a topic that is often requested by current and previous clients. First things first, repairing your credit for free is indeed possible; however, it requires a lot of hard work on your part. If you are ready to put in the effort, you can save yourself both time and money. So, without any further ado, let's dive in!
Table of Contents
Obtaining Credit Repair Services at No CostHow to Fix Your Credit Score on Your Own Without Spending MoneyUsing Free Credit Repair Software: Is it a Viable Option?Free Credit Repair: Get Your Credit ReportsCredit Repair and Your Credit ScoreConcluding Thoughts on the Importance of Credit Repair
Obtaining Credit Repair Services at No Cost
Though some claim to offer credit repair for free, this is often not the case. In fact, free credit repair often comes with a catch. No person or business is willing to provide credit repair services without any cost unless there is something to gain from it. In the early stages of my credit repair business, I knew that I needed to offer some services for free to bring awareness to my brand and establish credibility with potential clients. However, even then, I was seeking reviews and testimonials from clients in exchange for offering them services for free. Nowadays, my company, ASAP Credit Repair, still offers our clients one round of credit repair services for free, but you must enroll and pay the initial service fee. Overall, getting something for free always has a price.While it is possible to repair your credit on your own for free, it does take time and effort. I recommend disputing any errors on your credit report yourself, which is free of charge. However, you need to allocate at least one to two hours per month for the next three to five months to complete all the necessary steps involved in credit repair. If you do not have the luxury of time, then it is best to seek out a local credit repair service or company to guide you through the process. On average, credit repair can cost between $400 to $600 for professionals to complete all the necessary work for you.
How to Fix Your Credit Score on Your Own Without Spending Money
Fixing your credit score on your own might be a little time-consuming, but it's much easier than you may think. The following are some things you should keep in mind when repairing your credit score on your own:
1. Do not dispute your credit reports online. If you do, you give up your legal right to dispute your credit report more than once in an entire year. Moreover, the dispute process is outdated and generic, which means it can hinder you from achieving effective results.
2. Research and pull your credit report. Approximately 70% of the time spent on credit repair is consumed doing research and obtaining your credit report. For the remaining 30% of the time, you can start drafting your credit disputes.
3. Access your credit reports online. It's essential to use a credit report provider that offers as much available data as possible so that you can identify all the possible errors on your report. Identity IQ is a reputable credit report provider.
4. Understand what dispute means. The two laws that protect consumers and provide dispute guidelines for credit reports are the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA).
5. Draft up your own dispute letter. Don't be misled by online credit repair gurus. Drafting a dispute letter via Google Docs or paper and pencil is simple. First, you need to research the addresses of the Credit Reporting Agencies (Equifax, Experian, and Transunion). Then, on the letter, you should provide your name, address, date of birth and the last four digits of your social security number. Identify the account name and number you are disputing. Finally, request account validation by asking for proof of the account being authorized, such as a credit application, ledger balance history showing payments made and dates, and all monthly billing statements provided since the account's opening.
6. Wait thirty days. If the creditors do not provide the proof you requested, send a secondary certified mail dispute letter stating that you did not get the requested documents. If the account has charge-offs or collection records, request they be deleted. If it has late payments, request that the late payment history be removed.
7. Repeat the last step as many times as possible until you obtain the desired results. If you get stuck, contact reputable credit repair firms such as ASAP Credit Repair, but never use online templates. Structure your dispute letter simply and straightforwardly. A quick Google search for dispute template letters can help you get an idea of what the structure looks like.
Using Free Credit Repair Software: Is it a Viable Option?
When I began working in the credit repair field, I was on the lookout for a tool that could assist me in drafting effective dispute letters to streamline my customers' overall experience. At that time, the credit repair cloud software was the only option available. This software was originally created to aid credit repair companies in assisting their clients in fixing their credit, but it is now also available for individual use. They also offer a free 30-day trial period, during which you can use their software at no charge to generate your first dispute letter. If you're looking to do your credit repair for free, this is an excellent secondary option that not only walks you through the credit repair process step-by-step but also provides outstanding credit repair guidance. Credit Repair Cloud offers a variety of different dispute letters and tactics, as well as different dispute reasons that can help you tailor your dispute responses to individual accounts. However, if you're only using the free trial of this software, access will be restricted to their 1st round dispute letters. In order to complete your entire credit repair process, you will either have to create your own subsequent round letters or pay to upgrade the software. Check out other credit repair software options on the market as well, as there are around 10 other options, which will allow you to determine the best fit for you. Once you've figured out the process on your own, you could turn it into a credit repair business to help others improve their credit.
Free Credit Repair: Get Your Credit Reports
To repair your credit for free, the first and foremost thing you need is a copy of all three credit reports: Equifax, Experian, and TransUnion. Once you delve deeper into credit repair, it is recommended to dispute with all credit reporting agencies and data furnishers. However, it is suggested that you begin with a simple approach.It's crucial to obtain your credit reports to identify the derogatory accounts that you may dispute. But which credit report should you opt for? The straightforward answer to this is that there is a preference. Although all credit reports provide similar information, some reports are more effective than others.Lenders who grant loans generally retrieve a FICO report to evaluate your credit score. However, accessing this report can be quite lavish. Therefore, it is suggested that you use the Vantage score report, which is way more affordable but offers identical data as the FICO report.For the most effective credit repair credit report, IdentityIQ is recommended as it provides more information than other credit monitoring sites. The data feed is the same as other Vantage scoring reports, but IdentityIQ can help you to detect more overall errors on your credit report resulting in better results, in our experience.It is not obligatory to use IdentityIQ to access your credit reports, but it is suggested that you obtain all the credit reports from a reputable credit monitoring site. However, we have found IdentityIQ to be more effective for our clients than any other traditional site.
Credit Repair and Your Credit Score
To put it simply, credit repair is just one of the many ways you can boost your credit scores. While it may help to fix certain problems, maintaining a consistent track record of timely payments is crucial to achieving long-term credit health. However, credit repair can help you improve your credit score in these ways:
1. Removing negative payment history or negative accounts can almost always help your credit score increase.
2. To ensure maximum results, it's important to have positive revolving and installment accounts reporting as well.
3. Maintaining good payment history on your active account is vital to maintaining great credit.
4. If you have limited credit and need to build it up, a secured credit card is a great way to begin.
Overall, credit repair can be an incredibly effective tool for improving your credit score. However, it's also essential to have established credit, pay your bills on time, and keep your credit card balances low. By following these guidelines, you're sure to see the maximum benefit from credit repair.
Concluding Thoughts on the Importance of Credit Repair
Throughout my 15 years in the industry, I have encountered countless individuals who hesitate to begin the credit repair process due to a lack of knowledge regarding where to start. My suggestion? Take that first step forward and embark upon the journey, whether it be investing time in educating yourself on credit repair and creating a dispute letter or considering hiring a professional credit repair company. Regardless of which route you take, it is essential to take action and avoid complacency. Taking the initiative now could ultimately save you thousands in paid interest in the years to come. If you are unsure where to begin your search for credit repair companies, consider reaching out to ASAP Credit Repair for a complimentary consultation and evaluation. Our team understands the importance of prompt and effective credit repair and is here to help.