If we haven't had the pleasure of crossing paths, my name is Joe Mahlow, and I have extensive experience in the Personal Finance and Credit industry. Writing for a diverse and curious audience is one of my passions, so I dedicate a great deal of time to crafting informative and engaging posts on pertinent topics. Today, I'd like to begin our discussion on Credit Repair for Free by addressing some of the commonly-asked questions that I receive from both my current and former clients. While it is absolutely possible to repair your credit without spending a penny, please note that it will require a significant amount of effort on your part. However, if you are up for the task, the payoff of saving money and time can be well worth it. So let's dive in.
Table of Contents
Tips on Obtaining Free Credit RepairRepair Your Credit For Free: A Step-by-Step GuideUsing Free Credit Repair Software: Is it a Viable Option?Obtain Your Credit Reports for Free Credit RepairDoes Credit Repair Improve Your Credit Score?Concluding Thoughts
Tips on Obtaining Free Credit Repair
1. Be cautious of any company or individual claiming to offer free credit repair services. These entities are unlikely to repair your credit free of charge unless they are receiving something in return.
2. When I first started operating in the credit repair industry, I did a few clients' repairs for free since I required testimonials or reviews in order to demonstrate proof of my skills.
3. My business, ASAP Credit Repair, offers free credit repair services, but only for one round of service. To begin, you must enroll and pay the service fee. Nothing is truly free, and there is always a cost associated with it.
4. If you want to repair your credit yourself, you can do it for free. However, you must dedicate time to accomplish this. I recommend that you spend 1-2 hours per month for the next 3-5 months to complete the necessary steps.
5. If you do not have sufficient time to undertake your own credit repair, I suggest you seek a credit repair service or company nearby to assist you with your repairs. The average cost for credit repair is $400-600 for most consumers who want someone to do it for them.
Repair Your Credit For Free: A Step-by-Step Guide
If you want to repair your credit without spending a single penny, you can do it on your own. It may require a bit of your time, but it is a lot easier than you might think. Here are some things to keep in mind:
1. Never dispute your credit report online.Disputing a credit report online forfeits your legal right to dispute it more than once a year. Plus, the process is outdated, and generic, and results in less effective outcomes.
2. Understand what disputing means.Familiarize yourself with two laws that protect you: the Fairy Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA).
3. Access your credit reports online.Use a credit report provider such as Identity IQ to obtain a comprehensive report that identifies all errors on your credit report.
4. Draft up your own dispute letter.Ignore online recommendations and create a dispute letter via Google Docs or other word-processing software. Include your name, address, date of birth and last four of your social number. Indicate the account name, number, and reason for disputing before drafting the body of the paragraph. Request that they validate the account by providing proof of authorization, like a credit application, a history of the ledger balance, and all the monthly billing statements since the account's opening.
5. Wait 30 days.If they do not respond with the requested documents, send a secondary dispute letter via certified mail describing the missing items you had requested. If it's a collection or charge-off, request that the account be deleted. If it's an account with late payments, request that the relevant late payments be removed.
6. Rinse and repeat.Repeat step five as many times as possible until you get the outcome you want. If you get stuck, seek advice from a reputable credit repair service like ASAP Credit Repair.Remember to keep your disputes straightforward and uncomplicated. Look for dispute letter templates online to see what a structure looks like, but don't copy them verbatim.
Using Free Credit Repair Software: Is it a Viable Option?
When I first entered the credit repair business, I needed a tool that could help me create dispute letters efficiently and ultimately enhance the customer experience. Back then, the only choice available in the market was the credit repair cloud software. While this software was initially designed to assist credit repair companies in addressing their clients' credit issues, it can also be utilized by individuals. In fact, they offer a complimentary 30-day trial period, where you can test-drive their software for free and generate your first dispute letter. This is an extremely advantageous option if you are seeking to repair your credit for free, as it guides you through the entire credit repair process step by step and provides valuable information on credit repair. Additionally, Credit Repair Cloud has available a broad range of dispute letters and tactics for you to use, as well as various dispute reasons that allow you to tailor your responses to each account specifically. However, it is essential to note that with the free trial version, access will be limited solely to their first-round dispute letters. To complete your entire credit repair process successfully, you will need to generate further dispute letters manually or upgrade to the paid software package. You may also consider checking out other credit repair software in the market since there are roughly ten other alternatives available. Once you become familiar with the process, you may even establish your own Credit Repair Business and assist others in restoring their credit!
Obtain Your Credit Reports for Free Credit Repair
To begin repairing your credit for free, the primary requirement is to obtain copies of all three credit reports, including Equifax, Experian, and Transunion. As you familiarize yourself with credit repair techniques, you may eventually need to dispute with all available credit reporting agencies and data furnishers, but it is best to start with simple procedures. Accessing your credit reports is essential not only to identify the derogatory accounts you need to list in your disputes but also to determine which credit report to use.So, which one should you choose? In general, most lenders who approve loans will pull your FICO report from the Fair Isaac Corporation. However, obtaining this report is expensive, and it is unnecessary until the end of your credit repair process. Instead, focus on acquiring the best Vantage score report, which is less expensive than a FICO report and provides the same data.The most suitable Vantage score report is the one provided by IdentityIQ, in my opinion. Although the data feed that provides this information is the same as other Vantage Scoring Reports, IdentityIQ offers more data, which can help identify more errors on your credit report and deliver better results. Keep in mind that using IdentityIQ is not mandatory as long as you obtain all three credit reports from a reputable credit monitoring site. However, based on our clients' results, we have found that IdentityIQ reports deliver better outcomes than traditional sites.
Does Credit Repair Improve Your Credit Score?
In short, credit repair can help boost your credit scores, but it's crucial to understand that it's just one aspect of improving your credit. Maintaining excellent credit and payment history is equally crucial to continue advancing your credit scores. While credit repair may seem like a one-and-done solution, the truth is different- removing accurate accounts from your credit report is a long shot.
Here's what credit repair can do to boost your credit score:
- Eliminating negative payment history or negative accounts can almost always help improve your credit score.
- However, having positive revolving and installment accounts reports as well is equally vital; otherwise, your credit score increase will be minimal.
- Maintaining good payment history on your active account is one of the most critical things you can do to keep your credit in excellent shape.
- If you're new to credit or have limited access to it, a secured credit card is an excellent option to consider as it can help you build credit quickly.
To sum it up, credit repair can work wonders, but you must also have established credit, make timely payments, and keep your credit card balances close to zero at all times to ensure that credit repair has the maximum positive effect on your credit scores.
Concluding Thoughts
Over my 15 years in the industry, I have encountered numerous individuals who fail to take the necessary steps toward credit repair simply because they are unsure of where to begin. My advice is to take that first step and start taking action, whether it means educating yourself on credit repair and drafting your first dispute letter or exploring the option of hiring a credit repair company to do the heavy lifting for you. Either way, it is crucial not to become complacent and stagnant. Remember that taking the initiative to repair your credit today can potentially save you thousands of dollars in interest payments over the next few years. If you require assistance in choosing a Credit Repair company, do not hesitate to check out ASAP Credit Repair, where we provide a free consultation and evaluation. We understand the importance of promptly restoring and improving our clients' credit.