Greetings, my name is Joe Mahlow, and I have had the pleasure of working in the world of Personal Finance and Credit for some time now. One of my passions is sharing knowledge and offering advice through my writing to those who follow my content. Today, I wanted to delve into the topic of Credit Repair for Free by addressing some questions that frequently come up from my current and past clients. I should note that it is possible to repair your credit for free, but I want to be honest and upfront by stating that it will require a fair amount of work and effort on your part. However, with determination and drive, not only can you improve your credit history without spending a dime, but you can also save yourself a significant amount of money and time. So, let's dive into this topic.
Table of ContentsObtaining Free Credit Repair: What You Need to KnowTips for Repairing Your Credit for Free on Your OwnUsing Free Credit Repair SoftwareObtaining and Utilizing Your Credit ReportsCan Credit Repair Boost My Credit Score?Wrap it up: Take Action Regarding Credit Repair!
Obtaining Free Credit Repair: What You Need to Know
Despite what some ads may claim, obtaining completely free credit repair services is a rarity. There is usually a catch that businesses and individuals alike require fulfillment of for providing these services. Starting out in the credit repair sector 15 years ago, I personally provided free services to clients in order to expand my reach and prove the worth of my services. However, the catch was in collecting feedback that served as valuable testimonials for my company's future prospects. Today, we at ASAP Credit Repair offer a one-time round of free service to our clients, but only after they pay the requisite fee and enroll themselves first. Simply put, free credit repair always comes with a hidden cost.While there are ways to repair credit without paying any cost, it involves investing a fair amount of time and effort. Disputing credit reports on a personal basis is a recommended option but requires devoting 1-2 hours per month for around the next three to five months to completion of the repair process. If this option seems infeasible due to time constraints, it is advised to enlist Credit Repair services or organizations nearby to take care of the repair needs. Since typical customers end up paying an average of $400-600 to external services for credit repair, it is advisable to choose this option wisely.
Tips for Repairing Your Credit for Free on Your Own
Fixing your credit score by yourself might take some time; however, it is not as hard as you might believe. Here are some steps you can take:
1. Do NOT dispute your credit reports onlineWhen you dispute your credit reports online, you may lose your legal right to dispute your credit report more than once in a year. Furthermore, the online dispute process is often generic, outdated, and ineffective.
2. Understand what disputing meansYou need to familiarize yourself with two laws that protect you as a consumer and provide the guidelines to dispute your credit report, which are: The Fairy Credit Reporting Act (FCRA) and The Fair Debt Collection Practices Act (FDCPA).
3. Draft up your dispute letterCreate a dispute letter via Google Docs or pen and paper with the following steps:
- Look up the Credit Reporting Agencies Addresses
- Provide your name, address, date of birth and the last four digits of your social security number
- Identify the account name and number you are disputing
- Request that the account be validated, attach the proof of account authorization such as a credit application, ledger balance history showing all payments made on the account with dates and times, and all monthly billing statements since the opening of the account.
- Conclude the letter and sign it.
4. Wait 30 daysIf they do not provide the proof of each account you disputed via mail, send a secondary dispute letter via certified mail, explaining that you did not receive the requested documents and that you want the account deleted (if it’s a charge-off or collection) or the late payment history removed (if it's an account with late payments).
5. Rinse and repeatRepeat Step 4 as many times as possible until you get the desired resolution. If you get stuck, reach out to ASAP Credit Repair or another reputable credit repair firm.
Remember, when drafting your own disputes, keep it simple and to the point. You can have a look at dispute template letters but avoid using any online template letters.
Using Free Credit Repair Software
When I first entered the credit repair industry, I searched for a tool to streamline my customers' experience by creating effective dispute letters easily. The Credit Repair Cloud software, which has evolved over time, was the only option available at that time and is still a top-choice tool for credit repair companies to help their clients fix their credit. Although it was primarily designed for credit repair professionals, individuals can use this tool, and a 30-day free trial is available to generate your first dispute letter. If you are looking for a cost-efficient option for credit repair, this is an excellent choice. Credit Repair Cloud offers step-by-step credit repair assistance and comprehensive information on credit repair in general. The software provides various dispute letters, tactics, and dispute reasons catered to the specific account. However, the free trial access is limited to the first round of dispute letters only, and you would have to pay to upgrade the software or manually create future round letters to complete the credit repair process. Explore the other available credit repair software options, as there are around ten others on the market, and choose the one that suits you best. Once you have mastered this process, you could earn from it by starting a Credit Repair Business and helping others fix their credit.
Obtaining and Utilizing Your Credit Reports
Obtaining a copy of your credit reports from all three credit reporting bureaus (Equifax, Experian, and Transunion) is essential when it comes to repairing your credit without incurring any cost. In the beginning, it's important to keep it simple and only dispute with the available credit reporting agencies and data furnishers. It's also crucial to identify the most appropriate credit report to use since not all credit reports provide the same quality of data. The recommended credit report to use is the Vantage score report since it is less expensive and contains the same data as the Fair Isaac Corporation (FICO) report. Of all the credit monitoring sites, IdentityIQ stands as the best option to access credit reports since they provide more data than other sites offer. It's worth noting that clients who used IdentityIQ reported higher results compared to other traditional sites, though it's not mandatory to use their services as long as you obtain all three credit reports from a reputable credit monitoring site.
Can Credit Repair Boost My Credit Score?
To put it simply, credit repair can indeed impact your credit score, but it's worth noting that it is just one approach to enhancing your creditworthiness. Besides fixing negative items, it's crucial that you maintain a strong credit record and prompt payment history to continually progress your credit score. Contrary to popular belief, credit repair doesn't work like magic in resolving all your credit problems. In reality, except in cases where reports are incorrect or include mistakes, the chances of legitimately eliminating an account from your credit report are relatively slim.
So, what sort of improvement can you expect from credit repair?
Eliminating negative payment history or negative accounts will almost always result in an increase in your credit score. However, as stated previously, this progress may be minimal if you don't have positive revolving and installment accounts showing. Maintaining good payment history on your active account is one of the most critical things you can do to ensure excellent credit. Suppose you are low on credit and need to build it up. In that case, it's wise, to begin with a secured credit card, which can aid you in establishing credit rapidly.Ultimately, credit repair is an effective tool to enhance credit scores, but it's important to make sure that you have established your credit, paid your credit obligations on time, and kept your credit card balances as low as possible at all times. Doing so will increase the chances of credit repair having the best possible positive effect on your credit ratings.
In summary, here are the main points to remember:
1. Credit repair can help your credit score, but it's not a one-size-fits-all solution.
2. It's necessary to maintain a history of prompt payment and established credit.
3. Eliminating negative items can improve your credit score.
4. Having positive installment and revolving accounts is crucial
5. Maintaining a good payment history is one of the major things you can do to have excellent credit
6. Using a secure credit card is an effective way to build credit.
7. Finally, ensuring that you pay your credit obligations on time and keep your credit card balances low will maximize the impact of credit repair on your credit scores.
Wrap it up: Take Action Regarding Credit Repair!
In my 15 years in the industry, I have witnessed numerous situations where people fail to start the credit repair process because of a lack of knowledge on how to proceed. I suggest taking the first step by learning about credit repair and creating a dispute letter or seeking assistance from a credit repair company to handle the job for you. Whatever the case, do not procrastinate and do nothing. Proactively working on repairing your credit today could save you thousands of dollars in interest payments in the future. If you are unable to find a reputable credit repair company, don't hesitate to consult ASAP Credit Repair for a free evaluation. Our team is committed to helping clients quickly improve and restore their credit.