If we have not yet met, my name is Joe Mahlow, and I am deeply invested in the Personal Finance and Credit arena. I enjoy crafting helpful responses to topics that are pertinent to both you and a myriad of others who enjoy following my content. Today, I would like to delve into the often-asked question of Credit Repair for Free. Though free credit repair is attainable, it requires a significant amount of hard work. However, with an ounce of determination and persistence, you can certainly save both money and time. So, without further ado, let's jump right in!
Table of Contents
Obtaining Credit Repair for FreeDIY Credit Repair: Step-by-Step Guide to Free Credit Score FixUsing a Free Credit Repair Software: A Viable Option?Free Credit Repair through Credit ReportCan Credit Repair Help Boost My Credit Score?Final Thoughts on Credit Repair
Obtaining Credit Repair for Free
It's unlikely that anyone or any company offering free credit repair is doing so without expecting something in return. Even if a service is advertised as free, be cautious, as there is often more to the story. For example, when I began working in credit repair over 15 years ago, I provided my services for free to clients in order to gain testimonials and reviews from them. Even though the service was free, the client was required to leave feedback, allowing me to establish a reputation in the industry.Now, my company, ASAP Credit Repair, still offers one free round of services to clients who enroll and pay the service fee. While the round of services is free, there is still a cost to enroll. As it is with most things, free will always come with a cost.However, if you choose to repair your credit on your own, it is possible to do so for free. It will require time and effort, however. I recommend disputing your credit reports for free, but be sure to set aside 1-2 hours per month for the next several months to complete all the necessary steps. If you lack the time, consider finding a credit repair service or company near you. Keep in mind that credit repair services can cost, on average, anywhere from $400-600.
DIY Credit Repair: Step-by-Step Guide to Free Credit Score Fix
Repairing your credit score on your own is a time-consuming process, but it can be done. However, it's important to avoid disputing your credit score reports online. This is because disputing online can limit your ability to dispute more than once within a year, and the process tends to be ineffective. Successful credit repair is 70% research and credit report analysis and 30% crafting dispute letters. Here's a step-by-step guide to help you fix your credit score for free:
1. Access your credit reports online - opt for a credit report provider that offers the most comprehensive data from all three credit bureaus. We recommend using Identity IQ.
2. Understand your dispute rights - become familiar with the FCRA and the FDCPA, which outline your rights as a consumer in disputing your credit report.
3. Draft your own dispute letter - ignore online gurus and templates. Create a simple dispute letter on Google Docs or paper. List your name, address, date of birth, and last four digits of your social security number, and identify the account name and number you're disputing. Request proof of verification of the account from the credit bureau.
4. Wait for 30 days - if the credit bureau fails to provide proof of the account after 30 days, send a follow-up letter via certified mail. If the account is a charge-off or in the collection, request a deletion. For accounts with late payments, request the removal of the late payment history.
5. Rinse and repeat - if necessary, repeat the last step until you achieve your desired results. You can also turn to reputable credit repair firms such as ASAP Credit Repair for additional assistance.
Remember to keep your dispute letters simple and straightforward. Look up dispute letter templates online for inspiration, but never copy them directly.
Using a Free Credit Repair Software: A Viable Option?
As an aspiring credit repair specialist, the first tool that comes to mind is software that simplifies the letter-dispute process and helps streamline customer experiences. One such software, the Credit Repair Cloud, designed for credit repair agencies, can be utilized by individuals too. The software offers a 30-day trial period during which users can generate their first dispute letter — a useful option for those looking to fix their credit scores for free. Along with step-by-step guidance, the software provides useful information related to credit repair. It also provides options for customized dispute letters that cater to specific accounts. However, the free version only allows access to 1st round dispute letters, and users will need to manually create future letters or pay for an upgrade to complete the credit repair process. While there are other credit repair software options available, it is advisable to test them out and select the one that suits your needs the best. Perhaps, in time, you may even consider starting a business to help others with their credit repair.
Free Credit Repair through Credit Report
In order to repair your credit for free, obtaining a copy of all three credit reports (Equifax, Experian, and Transunion) is mandatory. Disputing with all the available credit reporting agencies and data furnisher will be required but it's essential to keep it simple while starting. Looking at your credit reports will help you determine the derogatory accounts that you will list in your disputes. However, the significant question that arises is which credit report should be used, and is there any preference?Yes, there is. Various credit reports are accessible, but not all reports are created equally. The Fair Isaac Corporation (FICO) report is likely to be extracted by lenders who are approving your loan. Since accessing this report is costly, it's recommended to obtain the Vantage score report as it's inexpensive and has the same data as the FICO report. The best Vantage credit report to use for effective credit repair is provided by IdentityIQ, which, according to the author's opinion, has more data and has proven to give the best results.Although it's not mandatory to use IdentityIQ, it's essential to access all three credit reports from a reputable credit monitoring site. Using IdentityIQ reports produced the desired results for the author's clients over any other traditional site.
Can Credit Repair Help Boost My Credit Score?
Yes, credit repair is a useful tool to improve your credit rating, but it is important to note that it is not a cure-all for all credit problems. It is equally crucial to maintain a fabulous credit score by expertly managing and nurturing existing credit and payment records. The belief that credit repair alone can immensely salvage your credit profile may be misguided. In actuality, unless the account has inaccuracies or erroneous listings, you may find it challenging to strike out a valid record.
Here's what credit repair can do for your score:
- Removing negative payment history or adverse accounts will most likely have a positive impact on your credit score.
- However, it's crucial to ensure that you have positive revolving and installment accounts as well, or any score gains may be minimal.
- Maintaining excellent payment history on active accounts is one of the most fundamental steps in enhancing your credit score. To build credit, you may consider a secured credit card if you have limited credit history.
The bottom line is that credit repair is an effective tool for improving your credit score. However, cultivating and preserving an established positive credit record, paying bills promptly, and keeping credit card balances low, are crucial steps to ensure that credit repair is maximally effective in boosting your credit score.
Final Thoughts on Credit Repair
After spending 15 years in the industry, I have come across countless people who fail to initiate the credit repair process simply because they do not know where to begin. To address this, I suggest starting with a simple step like learning the basics of credit repair or seeking the assistance of a credit repair company. Inaction will only lead to complacency, which can result in thousands of dollars in paid interest over the next few years. If you are unsure about how to choose a reliable credit repair company, feel free to get in touch with ASAP Credit Repair for a free consultation and evaluation. Our team has the experience and expertise to help you fix and maintain a healthy credit score.