If we haven't met, my name is Joe Mahlow, and I specialize in Personal Finance and Credit. I love creating content that provides value to my followers. Today, I want to talk about Credit Repair for Free, a topic that I frequently discuss with my clients. It's possible to repair your credit without paying anyone, but be aware that it requires a significant amount of effort. However, if you're willing to put in the work, you can save both time and money. So, without further ado, let's dive into it.
Table of ContentsHow to Obtain Free Credit Repair ServicesHow to Repair Your Credit on Your Own Without Spending MoneyCan I utilize Credit Repair Software without Paying?Getting a Hold of Your Credit Reports for Free Credit RepairCan Credit Repair Boost Your Credit Score?Wrapping it up!
How to Obtain Free Credit Repair Services
It's quite rare to find a person or organization that offers free credit repair services without any underlying conditions. Generally, no one is willing to repair your credit without anything in return. When I began working in the credit repair industry 15 years ago, I did some jobs for free to get testimonials and reviews from clients. Even today, my company offers free credit repair services for a single round, but clients must still enroll and pay for the service fee. Free credit repair services will always come with an associated cost in some way.However, it's possible to repair your credit on your own completely free-of-charge. You only need to ensure you have the time set aside to make this happen. Disputing your credit reports for free is something I urge everyone to do; however, it will require setting aside a chunk of your time, about 1-2 hours each month, for the next 3-5 months to complete the process. If you lack the time for DIY credit repair, it is advisable to find a nearby Credit Repair Company or Credit Repair Service to assist you with repairing your credit report. On average, repairing your credit through a professional service can cost an individual between $400-600.
How to Repair Your Credit on Your Own Without Spending Money
Repairing your credit on your own can be time-consuming but not as challenging as it may seem. To begin the process, it is essential to avoid disputing credit reports online. Disputing online means sacrificing the legal right to challenge a credit report more than once within a year, even though the dispute process may not yield any positive results.The process of repairing credit is a 70/30 endeavor, meaning that 70% of the time is dedicated to researching and accessing your credit report, while 30% of the time is devoted to drafting your dispute.
Here are the steps to repair your credit for free on your own:
1. Access your credit reports online. A recommended credit report provider is "Identity IQ," as it provides the most data, making it possible to identify all the mistakes in your credit report.
2. Understand what disputing means. The Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) are laws that provide guidelines for disputing your credit report.
3. Draft up your dispute letter. Use the creditor’s address on the credit report and write your name, address, date of birth, and the last four digits of your social security number. Identify the disputed account name and account number. Request that the account is validated by asking for proof of the account being authorized, a ledger balance history of all payments made on the account with dates and times, and all monthly billing statements provided since the opening of the account.
4. Wait for 30 days. If they do not provide proof of the disputed accounts, send a secondary dispute letter via certified mail. In the letter, explain that you did not receive the documents requested and you want the account deleted (if it is a charge-off or a collection), or any late payment history removed (if it is an account with late payments).
5. Repeating the process. Send a secondary dispute letter as many times as you can until you get the desired outcome. If necessary, contact ASAP Credit Repair or another reputable credit repair firm for assistance.
Remember, when drafting disputes, keeping them simple and to the point is crucial. You may Google for templates to see the structure of a dispute letter but never use a template letter online.
Can I utilize Credit Repair Software without Paying?
Upon starting my career in the credit repair industry, I endeavored to locate a user-friendly tool to authenticate effective dispute letters and simplify my customer interactions. My search led me to discover a credit repair software, namely Credit Repair Cloud, that has enhanced over time and currently serves as a viable option for individuals as well. Although designed to assist credit repair companies in aiding their clients remedy their credit reports, Credit Repair Cloud now offers a complimentary 30-day trial period, granting you unlimited access to their software and granting you the capacity to generate your first dispute letter. Utilizing this software allows you to seamlessly navigate the credit repair process, offers a wealth of information on credit repair, and provides a variety of dispute letters and tactics with different dispute reasonings to tailor your dispute response to the specific account. However, please be informed that the free trial only allows access to the primary round of dispute letters. Therefore, if you intend to complete the credit repair process, the manual creation of future round letters or payment for an upgrade of the software will be necessary. There are many other credit repair software options on the market. So, consider exploring them and finding the one that best suits your needs. Once you familiarize yourself with this process, you could start a Credit Repair Business and help others to improve their credit!
Getting a Hold of Your Credit Reports for Free Credit Repair
If you're looking to repair your credit score, the first step is to secure a copy of all three credit reports - Equifax, Experian, and TransUnion. As you go deeper into credit repair, you may want to consider disputing with all available credit reporting agencies, including data furnishers, but it's better to keep it simple as a beginner. While the essential reason for accessing your credit reports is to identify derogatory accounts that require disputing, it's undoubtedly essential to find out which credit report to use. Do preferences exist?Of course. While there are different types of credit reports, they are not equal in value. Most lenders would prefer the Fair Isaac Corporation(FICO) report, and since it's relatively expensive compared to other reports, it's best to save it till the end of your credit repair services. Alternatively, use the best available Vantage score report, which is not only less expensive but also delivers the same data as the FICO report.
Which credit repair credit report is the best?
IdentityIQ, in our opinion, provides the best credit reports among other credit monitoring sites. It supplies more data compared to other Vantage Scoring reports, increasing your chances of identifying more errors in your credit report, which ultimately improves your results. However, using IdentityIQ isn't mandatory if you can access all three credit reports from reputable credit monitoring sites. We've only observed that our clients experienced higher results with IdentityIQ.
Can Credit Repair Boost Your Credit Score?
In brief, yes. However, it's crucial to be transparent with clients that credit repair is just one of many tools that can improve their credit scores. To keep advancing their scores, clients must also manage and maintain a solid payment history and established credit. Contrary to popular belief, credit repair won't solve all credit issues since account removal from credit reports is unlikely unless the account is inaccurate or has reporting errors.
So, what specific areas can credit repair help boost your credit scores?
1. Credit repair can remove negative payment history or accounts, resulting in a credit score increase.
2. Yet, clients must ensure that they also have positive revolving and installment accounts reporting, or their score increase may be minimal.
3. Maintaining good payment history on active accounts is vital for maintaining excellent credit.
4. For those with limited credit, starting with a secured credit card is highly recommended to rapidly establish credit.
Ultimately, credit repair is a highly effective tool to boost credit scores. Still, having established credit, paying bills on time, and keeping credit card balances close to zero dollars are essential to ensure that credit repair has the best impact on credit scores.
Wrapping it up!
After spending 15 years in the industry, I've witnessed countless scenarios where people don't have the motivation to kickstart the credit repair process simply because they don't know where to begin. I recommend taking the initiative and taking action, whether it's learning about credit repair and drafting a dispute letter or considering hiring a credit repair company to manage the process for you. Don't get complacent and sit idly by – act now to save a significant amount of money on interest payments over the next several years. In case you're unsure of where to begin searching for a Credit Repair company, feel free to visit ASAP Credit Repair, where you can receive a complimentary consultation and evaluation. We understand how crucial it is to help clients quickly repair and revive their credit.