Hello there, my name is Joe Mahlow, and I have been involved in the Personal Finance and Credit industry for a while now. It brings me great joy to write posts on various topics that are important not only for my followers but also for many others in the community. Today, I want to touch on the topic of Credit Repair for Free, a subject that I get asked about frequently by both current and former clients. I can confirm that it is possible to repair your credit score for free, but I must warn you that it will require a significant amount of effort on your part. However, if you are willing to put in the work, you can save yourself both time and money. So, without further ado, let's dive in.
Table of Contents
Free Credit Repair: Myth or Reality?Repairing Your Credit for Free: A Step-by-Step GuideUsing Credit Repair Software: Benefits and LimitationsObtaining Your Free Credit Report for Credit RepairCan Credit Repair Boost Your Credit Score?Wrapping it Up!
Free Credit Repair: Myth or Reality?
The idea of getting free credit repair services is appealing to many. Unfortunately, anyone offering it usually has a catch. No individual or business is going to be willing to repair credit without getting something in exchange. Offering free credit repair services can be an effective way for new businesses to get their name out there, as evidenced by my own experience. Fifteen years ago, I provided free credit repair services to build my reputation and attract clients, but I also made sure to get testimonials and reviews from them. Today, my company, ASAP Credit Repair, provides one round of free credit repair services to enrolled clients who have paid the initial service fee.If you have the time and motivation to do it yourself, you can repair your credit on your own for free. Disputing your credit reports is a key step in the credit repair process, and you can do that for free. However, you need to be prepared to invest considerable time - up to 1-2 hours per month for 3-5 months - to complete all the necessary steps. If you lack the time or know-how, consider hiring a credit repair service or a credit repair company near you. Keep in mind that such services often charge $400-600 on average to do all the credit repair work for you.
Repairing Your Credit for Free: A Step-by-Step Guide
If you want to repair your credit on your own, it's possible with some effort and time. However, never dispute your credit reports online because you may lose your legal right to dispute again in the same year. Moreover, the process is often ineffective. In this guide, we provide you with a 70/30 credit repair process, where 70% of your work involves research and gathering your credit report data, while the other 30% is about drafting your dispute letters.
Here are the steps to repairing your credit on your own for free:
1. Access your credit reports online: We recommend Identity IQ, a credit report provider that offers accurate and reliable data for finding credit report errors.
2. Understand disputing: Becoming familiar with two laws: the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) is necessary so that you know your consumer rights.
3. Draft up your own dispute letter: Ignore any online misleading advice. Creating a dispute letter is simple. Search the Creditor's address from the bottom of the credit report and write it beside the Addresses of the Credit Reporting Agencies (Equifax, Experian, and Transunion). Next, provide your name, address, date of birth, and last four of your social. Identify the account name and account number you are disputing and write the body of the paragraph. In the conclusion, request that the account be validated and sign the letter.
4. Wait 30 days: If they do not provide you with proof of each disputed account, send a secondary dispute letter via certified mail explaining you did not receive the documents that were requested. You can either request for account deletion (if it's a charge-off or collection) or deletion of late payment history (if it has late payments).
5. Rince and Repeat: Repeat step 4 as often as necessary until you achieve the desired outcome.
It's wise to remember that when drafting your own disputes, it would be best to keep it simple and straightforward. You may look up dispute letter templates as a guide but never use them. If you require assistance, we recommend contacting ASAP Credit Repair or another trustworthy credit repair firm.
Using Credit Repair Software: Benefits and Limitations
1. When I initially joined the credit repair industry, I scouted for a tool that would assist me in creating effective dispute letters and streamlining my clients' overall experience. The Credit Repair Cloud software was the only option at that time and has since evolved.
2. Although designed to help credit repair companies fix their clients' credit, this software can also be used by individuals. Credit Repair Cloud offers a 30-day free trial with which you can generate your first dispute letter.
3. This second option is perfect for individuals seeking free credit repair, as the software guides them through the repair process step by step and provides useful information on credit repair in general.
4. Credit Repair Cloud provides an extensive range of dispute letters and tactics, including various dispute reasons that allow you to tailor your responses to the specific account.
5. While the free trial only provides access to the 1st round of dispute letters, you can either create future round-dispute letters manually or pay to upgrade the software to complete your credit repair process.
6. There are about ten other credit repair software options on the market, so feel free to explore them and find the one that suits you best. Who knows, you might discover a passion for credit repair and even start your own business to help others fix their credit.
Obtaining Your Free Credit Report for Credit Repair
To embark on your credit repair journey, it is essential that you have a copy of all your three credit reports, namely Equifax, Experian, and Transunion. While it may be tempting to dispute with all available credit reporting agencies and data furnishers, it is advisable to start simple. Your focus at the initial stage should be to scrutinize your credit reports to identify the derogatory accounts that require attention and listing in your disputes.However, it is critical to determine which credit report is ideal for your credit repair needs. The truth is not all credit reports are created equal, and some are more beneficial than others. While most lenders will usually pull your Fair Isaac Corporation (FICO) report before approving your loan, the high cost of accessing this report is not always recommended unless you've completed your credit repair services. Instead, you should consider getting the best Vantage score report, which is much cheaper and provides the same data as a FICO report.As to the question of who provides the most effective credit repair credit report, IdentityIQ offers the best credit reports, in my opinion, out of all other credit monitoring sites. Although other sites may provide the same information from the same data feed, IdentityIQ generally provides more comprehensive data that can help you spot more overall errors on your credit report, which typically translates into better results.While using IdentityIQ is not compulsory, it is crucial to access all three credit reports from a reputable credit monitoring site. Based on our clients' results, IdentityIQ reports have proven to be more effective than reports from other traditional sites.
Can Credit Repair Boost Your Credit Score?
Indeed, credit repair can help improve your credit scores; however, it should be viewed as only one tool in achieving this goal. Establishing and maintaining a solid credit and payment history is equally crucial in progressing your credit scores. Despite common belief, credit repair alone cannot completely resolve credit issues unless there are inaccuracies or reporting errors in the accounts.
These are the benefits of credit repair for improving credit scores:
1. Removal of negative payment history or negative accounts usually results in an increase in credit score.
2. But, it is also essential to have positive revolving and installment accounts reporting to ensure a decent credit score increase.
3. Your payment history on active accounts is one of the most critical factors in maintaining a good credit score.
4. A secured credit card can help you build credit quickly if you have limited credit.
In other words, credit repair can be a powerful means to an end, but combining it with established credit, timely payments, and maintaining low credit card balances ensures the greatest impact on your credit scores.
Wrapping it Up!
Throughout my 15 years of experience in the industry, I have come across several people who hesitate to begin the credit repair process due to a lack of knowledge. I recommend taking the first step and initiating action by educating yourself on credit repair, creating a dispute letter, or hiring a credit repair company to handle the process for you. Do not settle for complacency and inaction. By taking the initiative to repair your credit today, you can save yourself thousands of dollars in paid interest in the next few years. If you are unsure of where to start, check out ASAP Credit Repair for a consultation and free evaluation. We understand the importance of assisting clients in repairing and restoring their credit quickly.