In case we haven't met yet, my name is Joe Mahlow, and I have been actively working in the Personal Finance and Credit industry for some time now. Through my experience, I have become passionate about sharing valuable insights and writing informative posts on topics that are relevant to you and others who follow my content. Today, I want to dive into the topic of Credit Repair for Free and address some of the common questions and concerns that I receive from both current and past clients. It is definitely possible to repair your credit for free; however, I want to warn you that it does require a lot of effort on your part. If you are willing to put in the work, you can save yourself both time and money. So, let's jump right in.
Table of Contents
Ways to Obtain Credit Repair for FreeHow to Repair Your Credit for Free on Your OwnUsing Free Credit Repair Software: Is it Possible?Free Credit Repair: Understanding the Credit ReportCan Credit Repair Increase Your Credit Score?Tips on Starting Credit Repair Process
Ways to Obtain Credit Repair for Free
Finding a business or individual that advertises free credit repair services may seem like a great opportunity at first glance. However, there is typically more to the story than what is presented in their advertising. It is highly unlikely that anyone or any company will be willing to repair your credit for free without receiving something in return. For example, when I initially started providing credit repair services over 15 years ago, I knew that the only way to gain clients and demonstrate the effectiveness of my services was to offer some clients free credit repair. Nonetheless, I was still seeking testimonials or reviews, which required clients to invest their time in providing feedback, even though the services were rendered at no cost. Today, my company ASAP Credit Repair continues to offer a one-round free credit repair service, but the client is required to enroll and pay a service fee to begin. In essence, free always comes with a cost.That being said, you have the option of conducting your own credit repair for free, but it will require a significant time commitment. I encourage everyone to dispute their credit reports at no cost, but doing so will require setting aside 1-2 hours each month for three to five months to complete all the necessary steps. If you lack time to perform your own credit repair, I recommend that you seek out a credit repair service or company near you to aid in repairing your credit. Generally, credit repair can cost an average of $400-600 for a typical customer to have someone else perform all the credit repair work.
How to Repair Your Credit for Free on Your Own
Repairing your credit on your own can be done easily, but it may require some time and effort. The following tips will guide you on how to go about this process:
1. Avoid Disputing Your Credit Reports OnlineIt's advisable not to use the online credit dispute process, as it limits you to only one credit report dispute per year. Furthermore, the dispute process is outdated and won’t give you the desired result.
2. The 70/30 RuleThis process can be broken down into two parts: 70% research and pulling your credit report, and 30% drafting up your credit disputes.
3. Access Your Credit Reports OnlineObtain your credit report from a provider that offers the most accessible data. Our preferred provider is Identity IQ.
4. Understand What Disputing MeansYou should understand two laws that protect you as a consumer — Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). Knowing your legal rights is important.
5. Draft Up Your Own Dispute Letter
Ignore advice from self-proclaimed gurus online and use google docs or paper and pencil to create your dispute letter. Google the addresses of the Credit Reporting Agencies and take the Creditor’s Address at the bottom of the credit report, and put them off to the side. Include your name, address, date of birth and the last four of your social. Identify the account name and number and write a simple paragraph requesting proof of the authorized account's history.
6. Wait 30 DaysIf you don't receive the requested documents, send a secondary dispute letter via certified mail demanding the deletion of the account (if it's a charge-off or collection) or the removal of the late payment history (if it's an account with late payments).
7. Repeat the ProcessRepeat the last step until you get a resolution. If you face any challenges, seek help from reputable credit repair firms such as ASAP Credit Repair.
When drafting up your disputes, keep it simple and use google search for dispute template letters for structure. However, avoid using a template from unknown sources.
Using Free Credit Repair Software: Is it Possible?
When I entered the credit repair industry, I was searching for a tool that could enable me to create effective dispute letters, streamline customer experiences, and easily manage the entire process. Credit repair cloud software was the only solution available for me at that time. Although it was initially intended to aid credit repair companies in restoring their clients' scores, it can also be used by individuals. One of the most amazing things about this software is that they provide a free 30-day trial, which enables users to access a free dispute letter generator. This is an excellent alternative for those who are looking to repair their credit on their own and save money. With this software you can have access to step-by-step credit repair processes as well as comprehensive credit repair information. Credit Repair Cloud provides an array of dispute letters, tactics, and dispute reasons to help you tailor your credit dispute responses to each account. However, you should be aware that the free trial only allows access to the 1st round of dispute letters. To complete the entire credit repair process, you will have to manually generate future disputable invoices or pay to upgrade the software. Check out the other credit repair software options on the market; there are about 10 other options, and choose the one that best suits you. Maybe after successfully going through this process on your own, you can start up a credit repair business and help others fix their credit as well!
Free Credit Repair: Understanding the Credit Report
To start with, it is necessary to obtain copies of all three credit reports - Equifax, Experian, and TransUnion - for credit repair. Although it is advisable to dispute the errors listed in all the reports, when beginning, it is better to keep it simple. The credit report provides data about the derogatory accounts that you need to dispute, but it’s also important to know which credit report to use.Ideally, lenders prefer pulling out Fair Isaac Corporation (FICO) reports, which is priced high. Therefore, it is recommended that you opt for the best Vantage score report, as it is more cost-effective and provides the same data as the FICO report.To boost the results, one must use the most effective credit report. According to our experience, IdentityIQ provides the most comprehensive credit reports and produces higher results compared to other credit monitoring sites. Although the data source used by IdentityIQ is the same as other Vantage Scoring Reports, they provide more detailed information. However, it’s not mandatory to use IdentityIQ as long as the credit reports are obtained from a trustworthy credit monitoring site.In summary, the credit report is an important tool to identify and dispute errors for credit repair. Obtaining the best Vantage score report can save you money and produce the same results as FICO. IdentityIQ offers the best credit reports, but there are other reliable sites to choose from.
Can Credit Repair Increase Your Credit Score?
To put it simply, credit repair can benefit your credit score, although it is just one tool that can help improve it. Establishing and maintaining a strong credit score and payment history is crucial in advancing your credit score, in addition to utilizing credit repair. It's important to note that credit repair may not resolve all credit issues, especially if the account is accurate and does not have any report errors.
Here's how credit repair can help in improving your credit score:
- Removing negative payment history or accounts can create an increase in your credit score. But remember that an increase in your credit score may be minimal if you don't have positive revolving and installment accounts in your report.
- Keeping good payment history on your active account is necessary to maintain good credit. If you're limited on credit or need to establish credit, a secured credit card is a great way to start building credit quickly.
To sum up, credit repair can be an effective tool for improving your credit score, but it's critical to establish credit, make timely payments, and keep credit balances close to zero at all times.
Tips on Starting Credit Repair Process
After 15 years in the industry, I have witnessed numerous situations where people fail to take the initiative for credit repair simply because they do not know where to start. I suggest taking that first step by either educating yourself on credit repair and creating a dispute letter or seeking out a credit repair company to handle the process for you. Whatever decision you make, do not remain idle and take action immediately. Repairing your credit presently can save you thousands of dollars in the long run. If you are unsure of where to begin with finding a reputable Credit Repair Company, visit ASAP Credit Repair for a free consultation and evaluation. We understand the significance of promptly assisting clients with repairing and restoring their credit.