If we haven't formally met yet, my name is Joe Mahlow. I'm passionate about the Personal Finance and Credit industry, which is why I take the time to write blog posts on relevant topics. Today, I want to discuss Credit Repair for Free and answer some of the common questions I receive from my clients, both current and past. The good news is that it's definitely possible to repair your credit for free, but it will require some work on your part. However, if you're willing to put in the effort, you can save yourself both time and money. So, let's dive in!
Table of Contents
How to Obtain Credit Repair Without PayingHow to Repair Your Credit for Free on Your OwnUsing Free Credit Repair Software: Is it Possible?Obtaining Credit Reports for Free Credit RepairCan Credit Repair Boost Your Credit Score?Final Thoughts
How to Obtain Credit Repair Without Paying
Usually, if someone or a company is advertising free credit repair, there’s typically more to the story than what meets the eye. No individual or business is going to fix your credit for free unless they’re seeking something in exchange. In my case, when I started working as a credit repair specialist over 15 years ago, I did some clients’ work for free to create a portfolio, gain exposure, and obtain positive reviews. Although customers received my service for free, they still had to set aside time to provide feedback. Today, my firm, ASAP Credit Repair, still offers credit repair free of charge, but only one round of services. Nevertheless, you need to enroll and pay the service fee to start. Therefore, it’s true that anything free always comes with a cost.However, you can repair your credit for free by yourself, but you must have adequate time set aside to accomplish this. I suggest that everyone dispute their credit reports for free, but this entails reserving at least 1-2 hours monthly for the next 3-5 months to complete the credit repair’s necessary steps. If you don’t have the time or prefer not to do your credit repair, you can find a Credit Repair service or company near you to assist you with your credit repair. Typically, credit repair services cost customers between $400 and $600, on average, to have someone else perform all the credit repair work for them.
How to Repair Your Credit for Free on Your Own?
Credit repair might consume a little time, but the process is more straightforward than most people believe. Nevertheless, avoid disputing your credit reports online, as it relinquishes your legal right to dispute more than once in a year. Further, the disputing process is neither effective nor efficient. You should allocate 70% of the credit repairing time researching and pulling your credit report, while 30% of your time should be used to draft credit disputes. The following steps can guide you in repairing your credit:
1. Access your credit reports online.
2. Understand the disputing process.
3. Draft up your own dispute letter.
4. Wait 30 days.
5. Rinse and repeat.
Better use a credit report provider that offers free and dependable data, such as Identity IQ. Two crucial laws protect consumers and provide guidelines for credit report disputes, namely the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA). Your dispute letter should precisely identify the account name and number and provide proof of authorization, which validates the account, such as a credit application, balance history, payment record, and monthly billing statement.If the dispute remains unresolved, send a second dispute letter via certified mail requesting the account's withdrawal or late payment history removal. If stuck in the process, reach out to reliable credit repair firms. Though using dispute templates is allowed, avoid using any template found online. Keep the dispute letter simple, including only pertinent information.
Using Free Credit Repair Software: Is it Possible?
When I first ventured into the credit repair industry, my initial concern was finding a tool to facilitate the creation of effective dispute letters. Streamlining the customer experience was also a priority. The only viable option available at the time was the credit repair cloud software, which has since evolved. Although designed to assist credit repair companies in helping their customers fix their credit, it can also be used by individuals. The software provider offers a free 30-day trial that allows you to generate your first dispute letter at no cost. This phenomenal secondary option is ideal if you are looking to carry out your own credit repair without incurring costs. You can efficiently navigate the entire credit repair process with step-by-step instructions, in addition to accessing useful information on credit repair. Credit Repair Cloud offers an array of dispute letters, tactics, and reasons that you can use to cater your dispute responses to specific accounts. However, if you are only using the free trial, you will only be able to access their first-round dispute letters. As a result, to complete your credit repair process, you will need to manually create your own future-round letters or upgrade the software for a fee. Consider other credit repair software options in the market as there are about ten others to see which suits your needs. After mastering the credit repair process, you may consider starting a credit repair business to assist others in fixing their credit.
Obtaining Credit Reports for Free Credit Repair
To repair your credit for free, you will require a copy of all three credit reports, namely Equifax, Experian, and Transunion. Initially, it is recommended that you keep the process simple and focus on disputing with all the available credit reporting agencies and data furnishers as you learn more about credit repair. Accessing your credit reports is crucial so you can identify any derogatory accounts to include in your disputes. However, it's important to consider which credit report to use.There is a preference when it comes to credit reports. Although there are different types of credit reports, they are not all created equal. Most lenders who approve loans tend to pull the Fair Isaac Corporation (FICO) report. Although it provides the same data as the Vantage score report, accessing the FICO report is quite expensive, and it is not recommended to obtain it until the end of your credit repair services. It is best to obtain the best Vantage score report because it is inexpensive and provides the same data.IdentityIQ ranks highest in the provision of credit reports out of all credit monitoring sites. Even though the data feed that provides this information is the same as other Vantage Scoring Reports, IdentityIQ offers more data that can help you identify more errors on your credit report, which would typically give you the best results. Keep in mind that IdentityIQ is not mandatory as long as you obtain all three reports from a trustworthy credit monitoring site. However, the company has been shown to provide better results for clients.
Can Credit Repair Boost Your Credit Score?
In short, the answer is yes, credit repair can help improve your credit scores. However, it is important to note that credit repair is just one element of improving your credit standings. Maintaining a healthy, positive credit history is equally crucial to ensure your credit scores continue to rise. Many people make the mistake of assuming that credit repair can resolve all their credit-related issues. However, unless there are inaccuracies or discrepancies in your credit reports, removing accurate accounts from your credit history is unlikely.
So, how does credit repair aid in enhancing your credit score?
1. Removing negative payment history or accounts can almost certainly boost your credit score.
2. However, it is essential to have good payment history on your active accounts, as having only negative items removed from your credit report may lead to a minimal score increase
3. Furthermore, maintaining healthy revolving and installment accounts also helps in attaining an excellent credit score.
If you have limited credit, starting out with a secured credit card is a highly recommended option to begin building credit quickly. To utilize credit repair effectively, it is essential to maintain an existing established credit and ensure timely loan repayments.
To summarize, credit repair is a highly effective tool to improve your credit score. Still, having a healthy credit history, timely payment history, and minimal credit card balances ensure that the impact of credit repair on your credit scores is optimal.
Final Thoughts
After spending 15 years in the credit industry, I have encountered multiple individuals who are hesitant to start the credit repair process due to a lack of knowledge, which is understandable. However, all it takes is one small step in the right direction. Here are a few recommendations:
- Start by learning about credit repair techniques and drafting a dispute letter.
- Alternatively, you could seek help from a reputable credit repair company to handle everything on your behalf.
- Avoid becoming complacent and taking no action.
Initiating credit repair efforts today can translate to thousands of dollars of saved interest charges in the coming years. If you're searching for the perfect credit repair company, take a look at ASAP Credit Repair for a free consultation and evaluation. We understand how crucial it is to help our clients restore and fix their credit quickly.