If we have not met before, my name is Joe Mahlow. I specialize in the Personal Finance and Credit space. Writing informative posts on topics that are important to my clients and followers is something that I really enjoy doing. Today's topic is Credit Repair for Free. I receive numerous questions and queries from clients, both past and present. Therefore, before delving into the topic, allow me to address some of the frequently asked questions. To be clear, you can repair your credit for free. However, as with anything free, it often comes with a lot of work. So, if you are willing to put in the effort, you can indeed save yourself not only money but time as well. So let's dive in.
Table of Contents
Ways to Obtain Credit Repair Services
How to Repair Your Credit by Yourself for Free
Using Free Credit Repair Software: A Viable Option for Credit Repair?
Obtaining a Free Credit Report for Credit Repair
Can Credit Repair Boost Your Credit Score?
Concluding Thoughts on Credit Repair
Ways to Obtain Credit Repair Services
As tempting as it may seem, companies advertising free credit repair services aren't telling the whole truth. Nobody will offer free credit repair services unless something is in it for them. As an example, back when I began providing credit repair services 15 years ago, I offered free services to clients but asked that they provide me with testimonials or reviews in exchange. Today, my company, ASAP Credit Repair, still offers one round of credit repair services for free with enrollment and fee payment. Ultimately, nothing truly comes for free.
If you are willing to spend time and effort, you may repair your credit on your own for free. I suggest disputing your credit reports for free; however, be prepared to dedicate at least one to two hours a month for three to five months to rectify your credit. If you don't have the time to manage the repairs yourself, I advise contacting a credit repair service or company near your location. Typically, credit repair services can cost anywhere from $400-$600 for a person to handle the process.
How to Repair Your Credit by Yourself for Free
Repairing your credit on your own is not as difficult as some may think, but it does require a bit of time and effort. The following steps will guide you through the process:
Avoid Online Disputes:
Never dispute your credit reports online, as it forfeits your legal right to dispute your report more than once per year. In addition, the online dispute process is outdated and lacks efficacy.
Understand What Disputing Means:
To understand your rights, become familiar with consumer protection laws such as the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA).
Create Your Dispute Letter:
Drafting your dispute letter is straightforward. Search for the credit reporting agencies' addresses, use your name, address, date of birth, and last four digits of your Social Security number, identify the account you are disputing, and write out your dispute. Request that they validate the account by providing proof via a credit application, ledger balance history, and monthly billing statements. Sign and conclude your letter.
Wait 30 Days:
If the credit bureau fails to respond appropriately via mail, write a secondary letter reiterating your request via certified mail.
Repeat:
Repeat the process as many times as necessary until your goal is achieved. If you get stuck, consider seeking help from a reputable credit repair firm.
It is important to keep your dispute letters simple and to the point. You can also use dispute template letters from a Google search to guide you, but never use any template letter online.
Using Free Credit Repair Software: A Viable Option for Credit Repair?
When I first ventured into the credit repair industry, my very first mission was to look for a tool that could help me create effective dispute letters in a streamlined manner to enhance my customers' overall experience. The credit repair cloud software was the only option available at that time, and it has evolved over time. While this software is designed to help credit repair companies assist their clients in fixing their credit, individuals can also use it effectively. The company provides a free 30-day trial through which you can generate your very first dispute letter. If you are looking to repair your credit for free, this software provides an amazing secondary option that allows you to go through the process step by step while providing great information on credit repair. The software offers an assortment of dispute letters and tactics to use, as well as different dispute reasons that can help you customize your dispute responses to suit the account type. However, it is important to note that if you are using the free trial version of this software, you will only have access to their 1st round of dispute letters. Therefore, to complete your entire credit repair process, you will have to manually create your own future round letters or pay to upgrade the software. You can also explore other credit repair software options on the market, as about ten other choices are available. Once you have mastered the process, you could consider turning it into a credit repair business to help others fix their credit.
Obtaining a Free Credit Report for Credit Repair
In order to repair your credit score for free, accessing copies of all three credit reports (Equifax, Experian, and TransUnion) is crucial. When starting, it is advisable to keep it simple by disputing with available credit reporting agencies and data furnishers.
Knowing which credit report to use is also important. The Fair Isaac Corporation (FICO) report is usually pulled by lenders to approve loans. However, obtaining this report can be costly. Opt for the best Vantage score report instead, as it is less expensive and gives the same data as a FICO report. To determine which credit repair credit report is most effective, IdentityIQ is recommended. Their credit reports provide more data than any other credit monitoring site and can identify more errors on your credit report, ultimately yielding better results. While IdentityIQ is not mandatory, as long as you access all three credit reports from a reputable credit monitoring site, you can still obtain good results.
Can Credit Repair Boost Your Credit Score?
In short, credit repair can help to increase your credit score, but it is crucial to remember that it is only one of many tools available for improving your credit score. In addition to this, it is imperative to effectively manage and maintain your established credit and payment history in order to continue advancing your credit scores. A common misconception is that credit repair can resolve all credit issues, but unless the account has inaccuracies or reporting errors, it is unlikely that accurate accounts will be removed from your credit report.
So, what can credit repair do specifically to help increase your credit score?
1. Eliminating negative payment history or negative accounts will usually assist in increasing your credit score. However, it is essential to also have positive revolving and installment accounts reporting or the increase may be minimal.
2. Having a good payment history on all active accounts is one of the most important factors for maintaining excellent credit. If you are struggling to build credit, we suggest starting with a secured credit card to get the ball rolling, which can help you quickly build credit.
So, while credit repair is an effective tool for improving your credit score, it is critical to also ensure that you maintain established credit, make timely payments, and keep your credit card balances as low as possible to ensure that credit repair has the greatest impact on your credit score.
Concluding Thoughts on Credit Repair
After witnessing numerous credit repair cases throughout my 15 years in the industry, I have observed that many individuals lack the motivation to initiate the credit repair process due to their lack of knowledge in this area. To begin with, I recommend taking a single step forward and taking action, whether it is learning about credit repair and preparing your first dispute letter or researching and hiring a credit repair company to handle the task on your behalf. Aside from that, don’t remain idle and do nothing. Taking the initiative to repair your credit can help you save thousands of dollars in paid interest over the next several years. If you're uncertain where to start looking for a credit repair company, don't hesitate to consult ASAP Credit Repair for a free evaluation and consultation. We understand the importance of assisting clients in quickly repairing and restoring their credit.