My name is Joe Mahlow, and I have dedicated my time in the Personal Finance and Credit industry. I have written numerous posts on topics that are important to my clients and those who follow my content. Today, I would like to discuss the topic of Credit Repair for Free, something that I get asked about constantly. It is important to note that while it is possible to repair your credit for free, it does require a significant amount of effort. However, by following certain steps, you can save yourself both time and money. So, let's dive in!
Table of Contents
Getting Free Credit RepairTips on How to Fix Your Credit Report For FreeUsing Free Credit Repair Software: A Viable Option?Obtaining a Credit Report for Free Credit RepairCan Credit Repair Impact Your Credit Score Positively?Let's Take Action!
Getting Free Credit Repair
Although some companies might offer free credit repair services, there's usually more to it than what their advertisement suggests. No business or individual would be willing to provide credit repair services for free unless they expect something in return. For instance, when I first started offering credit repair services 15 years ago, I had no clients and needed to build my portfolio by helping a few people for free. However, those clients had to give me feedback or testimonials in exchange. As a result, although they didn't pay for my services, they still invested their time in providing feedback. Today, my company ASAP Credit Repair, still offers free credit repair, but it's only for one round of services. Enrolling and paying a service fee is still mandatory to begin the process.Alternatively, you can undertake credit repair yourself for free, but you need to set aside sufficient time to do so. I recommend that you dispute your credit reports by yourself, but you must have a dedicated 1-2 hours every month for the next 3-5 months to complete all the necessary steps. If you don't have that kind of time, you should consider finding a credit repair company near you. However, it's worth noting that credit repair can be quite expensive, with the typical customer paying $400-600 on average for the complete service.To summarize, getting free credit repair services is possible, but they usually come with a cost or an expectation of feedback. If you're willing to invest the time, you can repair your own credit for free. If you're unable to commit that much time, you should look for a reputable credit repair company, knowing that there will be associated costs.
Tips on How to Fix Your Credit Report For Free
If you're looking to repair your credit report for free, it might take some time to get it done. However, there are simple ways to go about it that are easy to understand. It is important to note that disputing your credit reports online strips your legal right to dispute your credit report more than once a year, and the dispute process can be generic and outdated, resulting in ineffective results.
Here’s the step-by-step process you need to follow to repair your credit report on your own for free:
1. Access your credit reports online: You should use a credit report provider that can provide the most available data so you can find all the errors on your credit report. One recommended provider is Identity IQ.
2. Understand what disputing means: You need to be familiar with two laws, the Fairy Credit Reporting Act (FCRA), and the Fair Debt Collection Practices Act (FDCPA), which protect your rights as a consumer.
3. Draft up your own dispute letter: Stay away from advice from so-called online gurus. You can create a dispute letter using Google Docs or paper and pencil. Quest the address of the credit reporting agencies (Equifax, Experian, and Transunion), and list the creditor's address at the bottom of the credit report. Provide your name, address, date of birth and last four digits of your social security number. Identify the account name and number you're disputing, and keep your request short and sweet. Request the account be validated by providing proof of the account being authorized, like a Credit Application, the ledger balance history showing all payments made on the account with dates and times, and all monthly billing statements provided to you since the opening of the account. Conclude the letter and sign it.
4. Wait for 30 days: If you don't receive the documents requested - proof of all accounts disputed - send a secondary dispute letter via certified mail explaining that you did not receive the documents requested and you want the account deleted if it's a charge-off or collection, or you want the late payment history removed if it's an account with late payments.
5. Rince and repeat: Repeat step 4 as many times as necessary until you get the resolution needed. In case of any hitch, contact ASAP Credit Repair or any other reputable credit repair firm. Remember never to use any template letter online when drafting your disputes.
Using Free Credit Repair Software: A Viable Option?
As a newcomer to the credit repair industry, my first priority was finding a tool that could help me streamline the process of creating dispute letters and thereby enhance my customers' experience. At that time, the only option available was the Credit Repair Cloud software, which was initially designed to assist credit repair companies in helping their clients fix their credit. Interestingly, individuals can also use this software, and the company offers a free 30-day trial. During the trial period, users can generate their first dispute letter at no cost, making it an excellent resource for individuals looking to repair their credit without spending a dime. Credit Repair Cloud's software takes users through the credit repair process systematically and also offers valuable information on credit repair in general. The company provides various dispute letters, tactics, and dispute reasons to cater to different types of accounts. However, users of the free trial version have access only to Credit Repair Cloud's first-round dispute letters. Those looking to complete their entire credit repair process will need to pay for an upgrade or manually create future-round letters. While Credit Repair Cloud is not the only software option available, prospective users can explore the ten other credit repair software options on the market to find one that best suits their needs. Perhaps, after becoming familiar with this process, you could even establish a credit repair business and help others fix their credit!
Obtaining a Credit Report for Free Credit Repair
In order to begin repairing your credit for free, the most important step you can take is to obtain a copy of all three credit reports – Equifax, Experian, and TransUnion. Once you have accessed and reviewed your credit reports, you will be able to identify derogatory accounts that should be included in your disputes. Although it may be tempting to dispute with all available credit reporting agencies and data furnishers, it is often simpler and more effective to keep it basic when you are just starting out.One important question to consider before disputing your credit report is which credit report to use. In general, lenders who are evaluating your loan application will review your Fair Isaac Corporation (FICO) report. However, obtaining a FICO report can be quite costly, so it is best to use a Vantage score report instead. Vantage score reports are much less expensive and provide the same data as FICO reports.After using various credit reports, it has been determined that IdentityIQ provides the most comprehensive credit report for credit repair purposes. This site offers more data than other credit monitoring sites, which can help you identify errors on your credit report more accurately, leading to the best results. While it is not mandatory to use IdentityIQ, accessing all three credit reports from a reputable credit monitoring site is essential for effective credit repair.
Can Credit Repair Impact Your Credit Score Positively?
In short, the answer is yes. However, it is important to note that credit repair cannot solely improve your credit score. Managing and maintaining a good credit history with established payment records are also crucial factors in advancing your credit score. Clients often have the common misconception that credit repair can solve any credit issues on their report. Although credit repair can help remove inaccurate or erroneous accounts, the possibility of achieving a completely clean credit report is slim.
So how can credit repair benefit your credit score?
1. Eliminating negative payment history or negative accounts can improve your credit score significantly.
2. Having positive revolving and installment accounts reporting additionally contributes to increasing your credit score.
3. Ensuring good payment history on your active accounts is one of the most effective ways to maintain outstanding credit.
If you have limited credit and need to build credit quickly, we recommend starting with a secured credit card to rapidly accumulate credit history.
To sum up, while credit repair is a potent tool to uplift your credit score, it is vital to maintain established credit, timely payments, and low credit card balances. This upkeep will ensure that credit repair has the most positive impact possible on your credit score.
Let's Take Action!
Having worked in the industry for 15 years, I have encountered countless people who avoid credit repair due to a lack of initiative and knowledge. I strongly suggest taking the first step towards repairing your credit, whether that entails educating yourself on the process and crafting your dispute letter or exploring a reliable credit repair company to take care of the entire process. Don't just sit around and wait for a miracle; take action today to restore your credit. Remember, by initiating the credit repair process, you will spare yourself considerable paid interest in the coming years. Should you require assistance in finding a trustworthy credit repair company, you can check out ASAP Credit Repair and obtain a complimentary consultation and evaluation. At ASAP Credit Repair, we understand the significance of promptly repairing and restoring our clients' credit. Stick to your credit fix plan, and your credit score will be in much better shape.