If we haven't met yet, my name is Joe Mahlow, and I have a background in Personal Finance and Credit. I love taking the time to write posts about topics that are vital to my readers and followers. Today, I want to discuss Credit Repair for Free and answer some of the most commonly asked questions I receive from my clients. I want to emphasize that it is entirely possible to repair your credit for free, but it requires a great deal of work and dedication. However, if you are willing to put in the effort, you can save yourself both time and money. So, without further ado, let's dive into it!
Table of Contents
Free Ways to Repair Your CreditHow to Repair Your Credit for Free by YourselfUsing Free Credit Repair Software: Is it a Good Option?Free Credit Repair: Accessing and Choosing the Best Credit ReportCan Credit Repair Boost My Credit Score?Completing the Credit Repair Process
Free Ways to Repair Your Credit
Although some companies or people claim to offer free credit repair services, the truth is there is usually more to what they are offering. Nobody is going to voluntarily offer to repair your credit for free unless they have something to gain in return. For example, when I first started my credit repair business over 15 years ago, I had no clients. In order to make a name for myself and demonstrate the quality of my services, I offered services for free. However, I still expected something in return, usually a testimonial or review.My company, ASAP Credit Repair, still offers one round of credit repair services for free, but you need to enroll and pay the service fee to start. In reality, nothing is completely free, but we make sure to provide affordable service to help you get the results you need.If you prefer to repair your credit for free on your own, you can certainly try, but you will need to put in some time and effort. I recommend disputing errors on your credit reports, which you can do for free, but it will require significant time investment. Be prepared to allocate at least 1-2 hours each month over the next few months.If you are short on time and prefer professional assistance, you can always look for a credit repair service or company near you. Keep in mind that such services can be expensive, typically costing $400-600 for a full repair. Nonetheless, finding the right company can be worth it in terms of the benefits you see on your credit report.
How to Repair Your Credit for Free by Yourself
If you want to repair your credit on your own, it is not difficult but will require some time. Firstly, avoid disputing your credit reports online, as it may limit your right to dispute your report more than once a year. Additionally, the dispute process is outdated and generic and may not provide significant results. The process of credit repair is 70/30, which means 70% of the time should be for research and pulling the credit report, while the remaining 30% should be for drafting the credit disputes. To simplify the process, here are the steps for repairing your credit for free by yourself:
1. Access Your Credit Reports Online:It is recommended to use a credit report provider that offers the most accessible data to find possible errors on your credit report, such as Identity IQ.
2. Understand the Dispute Process:Become familiar with the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA), which protect you as a consumer and outline how to dispute your credit report legally.
3. Draft Your Own Dispute Letter:Ignore the advice of so-called credit gurus online. Instead, create a dispute letter by searching for the Credit Reporting Agencies Addresses, and use a Google Doc or paper and pencil. Provide your basic information, identify the account you want to dispute and ask for them to provide proof of the account being authorized, including the ledger balance history showing all the payments made on the account with dates and times and the monthly billing statement provided since the opening of the account.
4. Wait for 30 Days:If you do not receive the requested documents through mail, send a secondary dispute letter via certified mail stating that you did not receive the documents and requesting the removal of the account if it is a charge-off or collection. If it is an account with late payments, ask to remove the late payment history.
5. Rinse and Repeat:Repeat step 4 as many times as required until you get the resolution you want. If you get stuck, obtain help from a reputable credit repair firm, such as ASAP Credit Repair.
When creating a dispute letter, keep it simple and straightforward. While you can see a structure by searching online, do not use any template letter as they may not work for you.
Using Free Credit Repair Software: Is it a Good Option?
When I began working in the credit repair industry, my main concern was finding a tool that could help me create effective dispute letters and automate my customers' experience. After researching various options, I came across credit repair cloud software, which was originally designed to assist credit repair companies in helping their clients solve their credit issues. However, it can also be used by individuals for credit repair purposes. The software provides a free 30-day trial, during which you can generate your first dispute letter at no cost. With this tool, you can easily navigate through the credit repair process and access valuable information on general credit repair. Furthermore, Credit Repair Cloud offers a range of dispute letters and tactics, as well as dispute reasons that you can use to tailor your dispute responses to individual accounts. It is important to note that the free version of the software only provides access to the 1st round of dispute letters. Therefore, to complete the entire credit repair process, you will need to generate future round letters manually or pay to upgrade the software. Finally, do your research and explore the multitude of other credit repair software options on the market, and consider starting your own credit repair business to help others repair their credit.
Free Credit Repair: Accessing and Choosing the Best Credit Report
To repair your credit without paying anything, you need to obtain copies of your credit reports from all three credit bureaus: Equifax, Experian, and TransUnion. Initially, it is best to keep things simple and focus on disputing derogatory accounts listed on these reports rather than dealing with multiple credit reporting agencies and data furnishers right away.When accessing your reports, it is crucial to consider which one to use. In general, the lender's approval is based on your Fair Isaac Corporation (FICO) report, but its high cost makes it better to gain access to the best Vantage score report at first. Although other Vantage scoring reports have the same information, it is less expensive to get, making it ideal to work with.The best Vantage score report can be obtained from IdentityIQ, as it provides a more detailed analysis of your credit report than any other credit monitoring site. It allows you to identify more errors on your credit report, providing an edge in the credit repair process. However, any reputable credit monitoring site can provide all three credit reports, though IdentityIQ may offer higher results than other traditional sites.
Can Credit Repair Boost My Credit Score?
The short answer is yes. However, credit repair alone is not sufficient to boost your credit scores. It is essential to maintain an impeccable credit history and manage established credit wisely to achieve the desired results. Although people often assume that credit repair will resolve credit issues, if the reported information is accurate, removing an account is a difficult task.
So, how can credit repair improve your credit score?
1. Eliminating negative payment history or negative accounts typically results in a credit score increase. However, positive revolving and installment accounts must also report having a significant impact.
2. Maintaining excellent payment history on active accounts is one of the most vital aspects of maintaining a good credit score.
3. If you have limited credit, a secured credit card is a great option to establish credit quickly.
The bottom line is that credit repair is an effective tool to improve credit scores. However, maintaining established credit, timely payment history, and low credit card balances can maximize the impact that credit repair may have on your credit scores.
Completing the Credit Repair Process
Over my 15 years in the industry, I have come across people that lack the motivation to initiate the credit repair process simply because they are clueless about what should be done. However, taking just one step forward can be transformative. Whether you want to learn about credit repair and kick off with your own dispute letter or prefer to engage a credit repair company to do all the heavy lifting for you, it is essential that you do not become complacent and do nothing. As you take the initiative to repair your credit today, you are saving yourself thousands of dollars in interest in a matter of years. If you are unsure where to start looking, remember that ASAP Credit Repair is here to offer you a free consultation and evaluation. Our team understands the significance of helping clients to fix their credit promptly.