If we haven't met yet, my name is Joe Mahlow. I'm deeply invested in the Personal Finance and Credit space and take great pleasure in writing blog posts about subjects that matter to both you and the many others who follow my work. In today's topic, Credit Repair for Free, I'll be addressing several issues and questions I hear from former and current clients all the time. Though you can certainly repair your credit for no charge, I want to forewarn you that any "free" service typically entails a significant amount of effort. However, if you're willing to put in the time and hard work, you can certainly save yourself both money and time. Without further ado, let's dive in.
Table of Contents
Getting Credit Repair for Free: The Truth Behind the OfferSteps to Repair Your Credit for Free on Your OwnExploring Free Credit Repair Software OptionsObtaining Free Credit Repair by Checking Your Credit ReportCan Credit Repair Boost My Credit Score?Wrapping it Up: Credit Repair Initiative
Getting Credit Repair for Free: The Truth Behind the Offer
Advertisements offering free credit repair services may seem like an attractive offer, but more often than not, there's a catch. Companies or individuals may offer credit repair services for free in exchange for something else. For example, when I started offering credit repair services, I knew that doing some client work for free would help me establish my reputation and get reviews or testimonials. However, clients who received the free service were required to give feedback.Although my company, ASAP Credit Repair, offers one round of credit repair services for free, you still need to enroll and pay the service fee to get started. The truth is free always comes with a cost.If you're on a tight budget and have the time, you can repair your credit by disputing your credit report for free. But be prepared to set aside one to two hours per month over the next three to five months to do everything necessary for credit repair. However, if you don't have the time or feel overwhelmed, you should consider looking for a local credit repair service or company near you. The average cost of credit repair services can range from $400 to $600 for customers who have someone else do all of the work.
Steps to Repair Your Credit for Free on Your Own
Repairing your credit without professional help may be time-consuming, but it is much less difficult than most people think. One crucial piece of advice that we must emphasize is to avoid disputing your credit reports online, as doing so will automatically relinquish your legal right to dispute your credit report more than once a year. Additionally, the dispute process online is generic and outdated, yielding ineffective results.The process of repairing your credit is 70/30, which implies that 70% of your time will be spent doing research and pulling out your credit report, while the remaining 30% involves drafting your credit disputes. To make things simple, each step of the credit repair process is listed below.
1. Access your credit reports online: We recommend using a credit report partner like Identity IQ that provides the most thorough data available to identify any errors in your report.
2. Understand the meaning of disputing: Familiarize yourself with two consumer protection laws, namely the Fairy Credit Reporting Act and the Fair Debt Collection Practices Act. Although you do not have to read each law's details, understanding your legal rights is crucial.
3. Compose your own dispute letter: Ignore recommendations from online 'gurus'. Google the addresses of Credit Reporting Agencies (Equifax, Experian, and Transunion) and note the creditor's address from the bottom of each credit report. Next, provide your personal information such as your name, address, date of birth, and the last four of your social security number. Identify the account name and details you are disputing and write the body of the paragraph, requesting that the account be validated by providing proof of authorization such as a Credit Application, the ledger balance history, and monthly billing statements since the opening of the account. Conclude the letter with your signature.
4. Wait for 30 days: If it takes longer than 30 days to receive the requested documents, send a secondary dispute letter. Certified mail to request that the account be deleted (If it is a charge-off or collection) or request removal of the late payment history (If it's a delinquent account).
5. Repeat: Continue sending secondary dispute letters until you obtain the desired outcome. If you encounter any difficulties, we highly recommend seeking assistance from a reputable credit repair firm.
To simplify drafting your dispute, keep your language simple and straightforward. You can use a dispute template online to guide you through your writing but never copy such letters verbatim.
Exploring Free Credit Repair Software Options
In my quest to find a tool that simplifies the process of generating effective dispute letters for my credit repair clients, I came across Credit Repair Cloud, a software built specifically for this purpose. While originally designed for credit repair businesses, the software can also be used by individuals. In fact, they offer a free 30-day trial which enables you to create your first dispute letter for free. Using this software can guide you step-by-step through the credit repair process and provide invaluable tips and information. In addition, Credit Repair Cloud offers an array of dispute letters, tactics, and reasons for different account types, which can help tailor your dispute responses. However, when using the free trial, access is only available to their first-round dispute letters. This means to complete the entire credit repair process; you will need to manually create future-round letters or purchase an upgrade. It's worth noting that there are approximately 10 other credit repair software options available in the market, each with its own unique features. Who knows, after mastering this process, you may even decide to start a credit repair business and help others fix their credit!
Obtaining Free Credit Repair by Checking Your Credit Report
If you want to repair your credit without spending any money, one crucial requirement is having copies of the three credit reports: Equifax, Experian, and TransUnion. It is necessary to go through all the reports and pinpoint any derogatory accounts that you will later submit disputes for. However, there is an important question that needs answering: which credit report should you utilize? Well, the answer is affirmative, as not all credit reports are equally reliable.Even though most lenders pull up your Fair Isaac Corporation (FICO) report, it is better to get access to the Vantage score report since it is less expensive and provides similar data to the FICO report. The best credit reports for credit repairs, according to many, are those of IdentityIQ, which provide more data and can reveal more errors in your credit report, contributing to better results. Nevertheless, you can use any reputable credit monitoring site to obtain all three credit reports. It is also important to note that for novices in credit repair, it is advisable to keep it simple.
Can Credit Repair Boost My Credit Score?
To put it simply, credit repair can help to improve your credit scores, but it shouldn't be relied on as the sole solution. It's equally important to maintain a good credit history by managing and honoring your credit obligations. In fact, credit repair is only useful if any existing inaccuracies or errors on your credit report are properly addressed. However, there are a few things that credit repair can do to assist with improving credit scores, such as removing negative payment history and accounts.
Here are a few other ways that credit repair can improve your credit score:
1. Eliminating errors or inaccuracies from your credit report will have a positive impact on your credit score.
2. Positive revolving and installment accounts must be in place as well to help improve your credit score even further.
3. Making timely payments on your existing accounts is crucial to maintaining good credit.
4. If you lack a credit history and need to establish credit, then obtaining a secured credit card can help you start building credit quickly.
To sum up, credit repair is a valuable tool to improve your credit score, but it's essential to ensure that you have established credit, pay your bills on time, and keep your credit card balances as low as possible. This strategy will maximize the effectiveness of credit repair, resulting in the most significant impact on your credit scores.
Wrapping it Up: Credit Repair Initiative
In my 15 years in the industry, I have come across different scenarios where people lack the motivation to initiate the credit repair process as they remain oblivious to the steps involved. My recommendation is to take the first step by taking action such as learning about credit repair and drafting a dispute letter or seeking assistance from a credit repair organization to handle the work. Delaying the process will not yield any results and may cost you thousands of dollars in paid interest in the years ahead. If you're unsure where to begin the search for a credit repair company, check out ASAP Credit Repair for a free consultation and evaluation. We realize the importance of helping our clients quickly restore their credit.