If we haven't met before, my name is Joe Mahlow. I have dedicated my career to helping people manage their personal finances and improve their credit. One of the topics I receive the most questions about is credit repair, and specifically, how to do it for free. While it is possible to repair your credit without spending a dime, I want to be transparent and let you know that it will require some effort on your part. That being said, I believe that with some hard work and dedication, anyone can successfully repair their credit and save themselves time and money in the process. Let's dive in.
Table of Contents
Obtaining Free Credit Repair: Is It Possible?How to Repair Your Credit for Free: A Step-By-Step GuideUsing Free Credit Repair Software: An Informative GuideObtaining Your Free Credit Report for Credit RepairCan Credit Repair Improve Your Credit Score?Let's Conclude!
Obtaining Free Credit Repair: Is It Possible?
Although some individuals and businesses promote free credit repair services, it's unlikely that they won't ask for anything in exchange. No matter how tempting "free" sounds, bear in mind that there will always be a catch. When I first started out in the credit repair industry 15 years ago, I had no clients and knew that offering a complimentary service would be the ideal way to gain exposure and demonstrate proof of my expertise. However, in exchange for my services, I was looking for a testimonial or feedback from the client. Fast forward to today, my firm ASAP Credit Repair, offers a one-time free credit repair service with the caveat that clients must register and pay a service fee to begin.It is feasible to repair your credit without paying for a service; it requires dedicating enough time to do so. I urge individuals to contest their credit reports for free but keep in mind that it may take anywhere from 1-2 hours each month for the following 3-5 months to complete the process. For those who don't have the time to do their own credit repair, it may be wise to locate a credit repair service or company in your area. Be aware that employing a credit repair professional can cost between $400-600 on average.
How to Repair Your Credit for Free: A Step-By-Step Guide
Repairing your credit on your own can be time-consuming but not as challenging as you may think. However, it is crucial to avoid disputing your credit reports online to preserve your legal right to dispute them more than once in a year. Besides, the generic and outdated dispute process online often yields unproductive results.To repair your credit, you should dedicate 70% of your time to researching and reviewing your credit reports and 30% of the time to drafting disputes.
Follow these simple steps to repair your credit on your own:
1. Access your credit reports:Use a credit report provider that maximizes data availability, such as Identity IQ.
2. Understand the dispute laws:You need to understand the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) to know your legal rights as a consumer when disputing your credit report.
3. Draft your own dispute letter, avoiding common mistakes:Google the addresses of the Credit Reporting Agencies (Equifax, Experian, and Transunion) and use the Creditor's Address to provide your name, address, date of birth, and last four socials. Identify the account name and number and state your reason for the dispute concisely.
4. Wait for 30 days:If the credit report companies do not provide their accounts' proofs via mail, send a secondary dispute letter via certified mail requesting the account's deletion if it is a charge-off or collection. If it has late payments, request the removal of the late payment history.
5. Repeat the process:If you do not get satisfactory resolutions, repeat the last step until you achieve your desired goals. You can seek professional help from a reputable credit repair firm such as ASAP Credit Repair if you get stuck.
When drafting your disputes, keep it simple and straightforward, and never use online templates. You can search for dispute template letters to understand the structure better.
Using Free Credit Repair Software: An Informative Guide
When I first began working in the credit repair industry, I quickly realized the importance of having a tool to generate effective dispute letters in order to streamline the customer experience. While Credit Repair Cloud software was initially designed for credit repair companies to help their clients fix their credit, individuals can also take advantage of their offerings. In fact, they offer a 30-day free trial where you can generate your very first dispute letter for free. This is an amazing secondary option for those looking to do their own credit repair for free, as you will receive step-by-step guidance through the entire process, as well as access to valuable credit repair information.
Here are some key benefits of using Credit Repair Cloud software:
1. They provide a variety of dispute letters and tactics that you can use, as well as different dispute reasons that can help you tailor your dispute responses to the actual account in question.
2. Their free trial offers access to their 1st round of dispute letters. However, if you want to complete your entire credit repair process, you will have to manually create your own future round letters or pay to upgrade the software.
3. Keep in mind that there are about 10 other credit repair software options on the market, so do your own research and see which one works best for you. Who knows, after you've learned the ropes, you might even be inspired to start your own credit repair business and help others fix their credit.
Obtaining Your Free Credit Report for Credit Repair
To repair your credit without spending any money, the first step is to acquire copies of your credit reports from all three agencies: Equifax, Experian, and Transunion. Once you become more knowledgeable about credit repair, you may want to dispute your accounts with credit reporting agencies and furnishers, but it's advisable, to begin with a simple approach.Determining which credit report to use is crucial, as not all credit reports are created equal. Although most lenders look at your FICO report when deciding whether to approve your loan, accessing this report can be expensive, and it's not necessary until the end of the credit repair process. In contrast, the Vantage score report is less expensive and provides the same level of detail as the FICO report.So, which credit report is the most effective for credit repair? In my opinion, IdentityIQ offers the best credit reports compared to any other credit monitoring site. Although the data feed they use for generating this information is the same as other Vantage Scoring Reports, IdentityIQ provides more comprehensive data, which can help you recognize more errors on your credit report, resulting in overall better outcomes.Note that you can use other reputable credit monitoring sites to access all three credit reports, but we found that clients who used IdentityIQ reports had the highest success rates.
Can Credit Repair Improve Your Credit Score?
Yes, credit repair can indeed help increase your credit scores, but it is just one of several tools that you should use to achieve this objective. You should also ensure that you have a strong payment history and solid credit accounts in order to consistently improve and maintain your credit score over time. Most people mistakenly believe that credit repair is the solution to their credit problems, but this is not always the case. In many instances, accurate accounts cannot be removed from credit reports unless there are errors in their reporting.
Here is how credit repair can help boost your credit score:
1. Removing negative payment history or negative accounts from your credit report almost always leads to an increase in your credit score.
2. You should ensure that your revolving and installment accounts report positive information in order for credit repair to have a more significant impact on your score.
3. Maintaining an excellent payment history on your active account is one of the most effective ways of improving your credit score.
If you need to build credit but struggle to get approved for a credit card, consider starting with a secured credit card.
In conclusion, credit repair can be a highly effective tool for improving your credit score. However, you must ensure that you have established credit, pay your bills on time, and keep your credit card balances low to achieve the best results.
Let's Conclude!
Throughout my 15 years in the industry, I have witnessed many situations where individuals lacked the motivation to initiate the credit repair process because they did not know where to begin. My advice is to take the first step and take action, whether that means learning about credit repair or hiring a credit repair company to do the work for you. Do not sit around and become complacent. Taking the initiative to repair your credit now can save you thousands of dollars in interest in the next few years. If you are unsure where to start, you can always reach out to ASAP Credit Repair for a free consultation and evaluation. We understand the significance of aiding our clients in quickly repairing and restoring their credit.