Hello, my name is Joe Mahlow, and I specialize in Personal Finance and Credit and take great pleasure in composing various posts on topics that are particularly significant to my followers and others who find my content engaging. In this post about Credit Repair for Free, I'd like to begin by addressing some of the most frequently asked questions that I receive from my past and current clients. The truth is that you can repair your credit without spending money. However, I must emphasize that when it comes to any free resource, be prepared to put in a lot of effort. If you're willing to put in the work, you'll save yourself a lot of money and time. Now, let's dive into the details.
Table of Contents
How to Obtain Credit Repair Services without PayingHow Can I Improve My Credit Score for Free?Using Free Credit Repair SoftwareAccessing Your Credit Reports for Free Credit RepairCan Credit Repair Boost My Credit Score?Taking Action for Credit Repair
How to Obtain Credit Repair Services without Paying
It is highly unlikely to stumble upon an individual or a company that provides credit repair services for free without any underlying motive. No individual or organization will willingly offer this type of service for free without any expectations. When I first ventured into the credit repair industry over a decade ago, I began by administering free services to clients to boost my reputation and also request for testimonials from clients that benefited from my expertise. This strategy allowed me to build my clientele base. At present, my company, ASAP Credit Repair, offers only one round of free credit repair services, which is 100% free, but requires that you enroll and pay a service fee to commence the process. Therefore, it is important to understand that free services come with a cost.However, individuals can opt to repair their credit by themselves for free but must allocate a certain amount of time to do so. It is advisable that individuals dispute their credit reports for free but must set aside one-two hour per month for three-five months to complete all the necessary procedures to achieve credit repair. In a situation where individuals do not have the time to undertake credit repair by themselves, it is highly recommended to find credit repair services or a credit repair company nearby to assist in the process. Credit repair for most customers normally costs around $400 to $600 on average to have a professional handle the credit repair work.
How Can I Improve My Credit Score for Free?
Improving your credit score on your own is not a difficult task, but it can be time-consuming. It is best to avoid disputing your credit reports online as it may weaken your right to dispute it multiple times. Furthermore, the process is ineffective and outdated and may not provide desired results. The credit repair process requires you to invest about 70% of your time in research and obtaining a credit report and 30% of your time in drafting a credit dispute. Below are some steps to repairing your credit score independently and for free.
1. Obtain your credit reports online:To ensure that you identify all errors, it is advisable to use a credit report provider that provides the most available information. A recommended site is Identity IQ.
2. Grasp the concept of disputing:You need to understand the laws that protect you as a consumer and provide the guidelines for disputing credit reports. These laws are the Fairy Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). You should ensure that you know your legal rights without necessarily reading the laws.
3. Draft a dispute letter:Disregard the advice of unauthorized persons. Creating a dispute letter is simple. Search for the Credit Reporting Agencies Addresses (Equifax, Experian, and Transunion) online, list out the Creditor's Address found at the bottom of the credit report, then provide your name, address, date of birth, and last four digits of your social security number. Identify the account name and number, proceed to write a simple paragraph, and request that the account be validated. You can also ask for a Credit Application, the ledger balance history showing all payments made on the account, and all monthly billing statements since the account's opening. Conclude the letter with your signature.
4. Wait for 30 days:Wait for a reply via mail; if they do not send proof of the account's validity, send a secondary dispute letter via certified mail if the account is a charge-off or collection, request to have it deleted. If it has late payments, request to have the late payment history removed.
5. Repeat:Repeat step number 4 as many times as possible until you get a resolution. If you find it difficult, seek professional help by reaching out to a reputable credit repair firm like ASAP Credit Repair.
Remember to keep your disputes simple and to the point and possess the structure of a formal letter. You can Google dispute template letters to assist in structuring your dispute letter. However, do not use any template letter online as it could have errors.
Using Free Credit Repair Software
When I first entered the credit repair industry, I searched for an efficient tool to simplify the experience for my customers through the creation of dispute letters. At that time, the only option available, which has evolved since, is the credit repair cloud software. Originally built to assist credit repair companies, this software can also aid individuals in repairing their own credit. A free 30-day trial is offered for individuals to test the software and produce their first dispute letter free of charge. This software is an exceptional secondary option for those who prefer to fix their credit rating themselves, as it is user-friendly and has additional information related to credit repair. Credit Repair Cloud offers an array of dispute letters and tactics, as well as numerous dispute reasons to help you tailor your dispute responses to the specific account. However, it should be noted that only 1st round dispute letters can be accessed with the free trial version, so future round letters would need to be created manually or through software upgrades. You may also wish to explore other credit repair software options on the market, as there are around ten different choices available. Once you master the process, you could establish a credit repair business to assist others in improving their credit ratings.
Accessing Your Credit Reports for Free Credit Repair
In order to begin repairing your credit for free, it is essential to obtain copies of all three credit reports, including those from Equifax, Experian, and Transunion. While it may be tempting to dispute every derogatory account with all credit reporting agencies, starting with a simple approach is recommended. Accessing your credit reports is not only important to identify the negative accounts you will include in your disputes but also to determine which credit report is best to use.When it comes to deciding which credit report to use, there is a preference. While most lenders will pull your Fair Isaac Corporation (FICO) report for loan approval, it is not necessary to obtain this report until the end of your credit repair journey due to its high cost. Instead, it is suggested to obtain the best Vantage score report, which gives you the same data as a FICO report, but at a lower cost.When it comes to the most effective credit repair credit report, IdentityIQ is recommended over any other credit monitoring site. While the data feed used is the same as other Vantage Scoring Reports, IdentityIQ provides better access to more data which can help identify any errors and lead to better results. It is not mandatory to use IdentityIQ as long as you are accessing all three credit reports from a reputable credit monitoring site. However, it has been found that clients using IdentityIQ reports see higher results than any other traditional site.In summary, accessing all three credit reports is mandatory to begin credit repair for free. While obtaining a FICO report may be ideal for loan approval, it is more cost-effective to use the best Vantage score report. IdentityIQ is suggested as the most effective credit repair credit report due to its access to more data, but it is not mandatory to use them.
Can Credit Repair Boost My Credit Score?
In short, the answer is yes. However, credit repair alone cannot fix all your credit issues. To boost your credit score, you need to maintain a commendable credit history and manage your credit accounts well in addition to repairing your credit. Many people believe that credit repair is a magic bullet for their credit problems, but this is not the case. Unless your account is erroneous or contains reporting errors, it is unlikely that credit repair will help remove accurate information from your credit report.
So, what can credit repair help with to improve your credit score?
- Removing negative payment history or negative accounts can almost always increase your credit score.
- To significantly improve your credit score, you must also have positive revolving and installment accounts reporting.
- Maintaining good payment history on your active accounts is crucial for excellent credit.
If you need to build your credit, starting with a secured credit card is an excellent choice to help you build credit quickly.
The bottom line is that credit repair is an effective tool to increase your credit score, but maintaining established credit, making timely payments, and keeping your credit card balances as low as possible can enhance the benefits of credit repair for your credit score.
Taking Action for Credit Repair
In my 15 years in the industry, I have encountered numerous individuals who are unsure how to begin repairing their credit. It is crucial to take the first step, whether that means educating yourself on credit repair and drafting a dispute letter or considering hiring a credit repair company. Being stagnant and inactive will not lead to any change. Taking the initiative to repair your credit today will result in significant savings on interest payments in the coming years. If you're unsure where to start, consider reaching out to ASAP Credit Repair for a free consultation and evaluation. We are well aware of the importance of helping our clients restore their credit in a timely manner.