If we have yet to meet, my name is Joe Mahlow, and I specialize in Personal Finance and Credit. In my experience, I've found writing about topics that matter to my audience is essential. Today, I will begin this discussion on Credit Repair for Free by addressing some frequently asked questions from my existing and former clients. It's possible to repair your credit entirely cost-free, but I want to emphasize that it's not easy work. However, if you're willing to put in the time and effort required, you'll undoubtedly save yourself both money and time. Let's dive right in.
Table of Contents
Getting Credit Repair Services for FreeHow to Fix Your Credit Yourself for FreeUsing Free Credit Repair Software: Is it a Viable Option?Free Credit Repair: Obtaining and Using Credit ReportsCan Credit Repair Improve My Credit Score?Wrapping It Up: Take Action and Repair Your Credit Today
Getting Credit Repair Services for Free
Free credit repair is not often what it seems to be. If a company or individual claims to provide free credit repair, chances are there is more to the offer than meets the eye. It is highly unlikely that any person or business will offer to fix one's credit for free unless they have something to gain in return. However, about 15 years ago, when one credit repair professional had no clients, they offered some clients free credit repair services to build their reputation and collect feedback. Despite this, those clients were still expected to provide feedback as a form of payment.Today, the same professional, now operating under the name ASAP Credit Repair, offers one round of credit repair services free of charge, but clients must enroll and pay the service fee to get started. The company understands that free services always come with a cost.While it is possible to repair credit for free, it requires a significant amount of time investment. Everyone should dispute their credit reports for free, but they must devote at least one to two hours every month for the next three to five months to complete the credit repair process. If one cannot find the time to handle credit repair on their own, it may be best to seek the services of a credit repair company or service provider. The cost of credit repair, on average, is around $400-$600 for those who would rather get help with their credit repair woes.
Here are some possible takeaways:
Free credit repair often comes with additional costs.One can fix their credit on their own for free, but it takes time and effort.A credit repair service or company can help those who don't have the time to do it on their own, but there is a cost associated with this.
How to Fix Your Credit Yourself for Free
Repairing your credit by yourself may take some time, but it is not as difficult as people believe. It is essential that you avoid disputing your credit report online because it forfeits your legal right to dispute more than once per year. Furthermore, the dispute process through online means is outdated and produces ineffective results. The credit repair process involves 70% research and pulling your credit report, while the remaining 30% is drafting credit disputes. Here are the steps you need to take to repair your credit on your own for free:
Access your credit reports onlineIt is recommended that you use a credit report provider that provides the most comprehensive data. A suggested provider is Identity IQ.
Understand what disputing meansAs a consumer, it is crucial that you familiarize yourself with two laws: The Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). Knowing your legal rights is essential.
Draft up your dispute letterDo not follow advice from online "gurus." By simply googling credit reporting agencies' addresses, taking the creditor's address at the bottom of the credit report, and providing your personal information with a simple paragraph requesting account validation, you can create your dispute letter.
Wait for 30 daysIf the documentation that you requested for the disputed account is not received, send a secondary dispute letter via certified mail.
Rinse and repeatRepeat the previous step until you obtain the desired resolution. In case of obstacles, reach out to ASAP Credit Repair or a reputable credit repair firm.Remember, your dispute letter should be short, simple, and to the point. Look online for a dispute template letter to structure it, but never use an online template.
Using Free Credit Repair Software: Is it a Viable Option?
When I first ventured into the credit repair field, my initial concern was finding a tool to facilitate the creation of effective dispute letters that would streamline my clients' experience. The credit repair cloud software, which has since evolved considerably, was the only option available at the time. Although designed primarily to assist credit repair companies in aiding clients to mend their credit, this software is also suitable for individual use. The company offers a 30-day free trial during which you can generate your first dispute letter without charge. This option is ideal for anyone seeking to repair their credit for free while going through the process step by step. Furthermore, the software provides invaluable information on credit repair in general and offers a variety of dispute letters and tactics that can customize responses to the specific account. However, it is important to note that while the free trial only encompasses the initial dispute letter, reaching the end of the credit repair process will require the manual creation of further rounds or upgrading the software at a fee. When deciding on credit repair software, explore the other ten options on the market and select one that works best for you. Perhaps, after mastering this process, you can start a credit repair business and assist others in improving their credit.
Here are the bullet points:
- The credit repair cloud software is ideal for generating high-quality dispute letters.
- Individuals can also use this software as it provides a step-by-step credit repair solution.
- A 30-day free trial is available during which you can generate your first dispute letter without charge.
- The software contains valuable information on credit repair and offers a variety of dispute letters and tactics that can be customized for specific accounts.
- The free trial only includes the initial dispute letter; future rounds will need to be manually created, or the software must be upgraded for a fee.
- Other credit repair software options are available on the market to explore.
- You may consider starting your own credit repair business after mastering the credit repair process.
Free Credit Repair: Obtaining and Using Credit Reports
To engage in credit repair activities without spending money, you must obtain copies of all three credit reports from Equifax, Experian, and TransUnion. While you may eventually want to contest negative information on your credit report with all contributing agencies, it’s wise to keep things simple in the beginning. Reviewing your credit reports will help you pinpoint accounts that you should challenge, but which report should you be using?The answer is not as simple as picking one report over the others. Various creditors may use different types of reports, and not all reports carry the same information. To save money, it may be best to focus on the most useful report. While most lenders typically pull from the Fair Isaac Corporation (FICO) report, obtaining this report can be costly. A cheaper alternative is to look at the Vantage Score report, which includes the same relevant data.Although other credit reports may work as well, IdentityIQ is considered the best credit monitoring site, as it provides more information than the other Vantage Scoring Reports, including data that could help identify other errors on your credit report. While it’s not strictly necessary to use IdentityIQ, results for our clients have been better with their reports than with those from other sites.In summary, to initiate free credit repair, obtain reports from a reputable credit monitoring site for all three credit bureaus, and focus your attention on the most useful report for your circumstances.
Can Credit Repair Improve My Credit Score?
In short, yes. However, it is important to note that credit repair should be viewed as just one tool available to help you improve your credit score. It is also crucial to maintain a positive payment history and strong credit accounts to continue to advance your credit scores. Contrary to popular belief, credit repair does not have the power to permanently erase accurate reports from your credit history.
So, how can credit repair aid in improving your credit score?
Eliminating negative payment history or accounts can generally boost your credit score.
It is important to have positive revolving and installment accounts reporting in order to achieve significant score improvement.
Maintaining good payment history on your active accounts is of utmost importance for excellent credit.
If you need to build credit, starting out with a secured credit card is highly recommended, as it can help you build credit quickly.
Ultimately, credit repair is an effective tool to improve your credit score. However, it is vital to ensure that you have established credit, make payments on time, and keep your credit card balances low in order to see the best results.
Wrapping It Up: Take Action and Repair Your Credit Today
Throughout my 15 years of working in the industry, I have encountered numerous situations where people hesitate to begin their credit repair journey simply because they do not know how to start. However, taking the first step is crucial, and it can be as simple as educating yourself on credit repair and drafting your first dispute letter. Alternatively, you can explore the option of hiring a professional credit repair company, but it's essential to avoid becoming complacent and not doing anything.By taking the initiative to repair your credit today, you can save thousands of dollars in paid interest over the next few years. If you're unsure about where to begin, you can always turn to ASAP Credit Repair for a free consultation and evaluation. We understand the importance of assisting clients in quickly repairing and restoring their credit.