If we haven't met before, I'm Joe Mahlow. As someone who's dedicated to the Personal Finance and Credit industry, I never miss an opportunity to contribute posts on various topics that are significant not just to my followers but also to anyone who's interested. Today, we'll be discussing Credit Repair for Free, and I'd like to start by addressing some of the most common questions that my current and previous clients usually ask. To be clear, it's possible to repair your credit for free, but I must warn you that it will take a lot of hard work. However, if you're willing to put in the effort, you'll certainly save yourself both time and money. So, let's dive in.
Table of Contents
Ways to Obtain Credit Repair Without PayingRepairing Your Credit: A Step-by-Step GuideUtilizing Free Credit Repair Software: Is it Possible?Obtaining Credit Reports for Free Credit RepairCan Credit Repair Boost My Credit Score?Concluding Thoughts
Ways to Obtain Credit Repair Without Paying
It is rare to find a person or a company that provides credit repair services for free without any agenda beyond their advertisements. If someone is offering it for free, it usually comes with some catch. When I began working in the credit repair industry over a decade and a half ago, I knew that in order to demonstrate my services and earn customer reviews, I needed to provide my service for free to some extent. However, I also required a testimonial or review in return for the client's time. My company, ASAP Credit Repair, still provides free credit repair services, but only for one round of service, and it requires enrollment and payment of the service charge to get started.Nevertheless, repairing your credit and improving it on your own can be achieved without paying fees. You need to dedicate some time to it, though. I recommend that everyone challenge their credit reports for free, but it requires setting aside 1-2 hours per month for the next 3-5 months to complete the credit repair. If you do not have enough time to do it yourself, you can locate a local credit repair company or service. The cost of full credit repair services for a typical customer ranges from $400 to $600 on average.
Repairing Your Credit: A Step-by-Step Guide
If you're looking to repair your credit, you don't need to hire a professional. While it can be time-consuming, it's not as challenging as you might think. Here are some steps you can take to do it yourself for free:
1. Don't dispute your credit reports online.Doing so waives your legal right to dispute your report more than once a year. Plus, the process is outdated and unlikely to yield positive results.
2. Spend 70% of your time researching and pulling your credit report.Understanding what you're disputing will increase your likelihood of success.
3. Spend 30% of your time drafting your dispute letter.
Here's how to do it:
- Access your credit reports online.
- Understand the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA).
- Create a dispute letter that includes your identifying information, the account you're disputing, and a simple request for validation.
- Wait 30 days for a response.
- If necessary, send a follow-up letter via certified mail.
- Repeat the process until you get the resolution you want.
4. Use a credit report provider, like Identity IQ.This will give you access to the most comprehensive data possible.
Remember, keep it simple, and don't use any template letters online. If you get stuck, consider reaching out to a reputable credit repair firm.
Utilizing Free Credit Repair Software: Is it Possible?
As a newcomer to the credit repair industry, my primary focus was to find a tool that could assist me in creating highly effective dispute letters while also improving customer experience. At that time, the only available option was the credit repair cloud software, which has since undergone various improvements. It was designed to aid credit repair agencies in repairing their clients' credit, but it can also be utilized by individuals. The software comes with a free 30-day trial, which provides access to generating your first dispute letter. This is an excellent secondary option for those who wish to repair their credit for free. The software allows you to go through the credit repair process step by step and provides valuable information on credit repair in general. Credit Repair Cloud also offers different dispute letters, tactics, and dispute reasons to help you tailor your response to the actual account. However, if you're using the trial version, you'll only have access to their first-round dispute letters. To complete your entire credit repair process, you would have to manually create your own future round letters or pay for software upgrades. Feel free to explore the other credit repair software options available – there are about 10 – to find the one that suits you best. Perhaps you could even turn your newfound knowledge into a credit repair business and help others improve their credit score.
Obtaining Credit Reports for Free Credit Repair
In order to effectively repair your credit for free, it is essential to obtain copies of your credit reports from all three major credit bureaus: Equifax, Experian, and TransUnion. It is recommended to start out by disputing with the available credit reporting agencies and data furnishers before moving on to the next step.Apart from using these reports to determine the derogatory accounts you need to list in your disputes, it is very important to select the right credit report. This raises the question of whether there is a preference. The answer is yes, and it is essential to be selective.Several types of credit reports exist, but they are not all equal. Generally, lending institutions that approve loans will pull the Fair Isaac Corporation (FICO) report. However, as this report is quite expensive, it is advisable to access the best Vantage score report first since it is less costly and offers the same data as the FICO report.For this purpose, IdentityIQ is the recommended credit monitoring site that provides the best credit reports among all others. Although the data source for the Vantage Scoring Reports provided by IdentityIQ is the same as other traditional credit monitoring sites, this site provides additional data that can help you identify more errors on your credit report, which can result in the best outcomes.While IdentityIQ is the most effective site for credit repair credit reports, according to our experience, you can still use other reputable credit monitoring sites to access the three credit reports. We have found, however, that our clients typically experience better results with the IdentityIQ reports than with any other traditional site.
Can Credit Repair Boost My Credit Score?
In short, credit repair can definitely aid in improving your credit score. However, it is important to keep in mind that credit repair is just one of the many tools that can be utilized to enhance your credit score. In order to continue elevating your credit scores, it is crucial to manage and maintain impeccable standing and payment history. Although many believe that credit repair can solve all of their credit problems, it is only effective if the account has inaccuracies or errors in reporting.
So, how does credit repair help in enhancing credit scores?
1. Eliminating negative payment history or negative accounts can almost certainly boost your credit score. However, it is crucial to have positive revolving and installment accounts reporting as well, as simply depending on credit repair may lead to only a minimum increase in your score.
2. Maintaining great payment history on your active accounts is one of the most crucial aspects of maintaining fantastic credit. If you are credit-limited and need to build credit, consider starting with a secured credit card that can aid in building credit quickly.
Fundamentally, credit repair is an extremely effective tool for enhancing credit scores. However, ensuring that you have established credit, pay your payments on time, and keep your credit card balances not exceeding zero dollars is essential to ensuring that credit repair positively impacts your credit scores.
Concluding Thoughts
Throughout my 15 years in the industry, I have witnessed many situations where people fail to take the necessary steps to repair their credit. They often lack the initiative to start because they do not know where to begin. My advice is to take the first step, whether that means learning about credit repair and drafting dispute letters or seeking the help of a credit repair company. Don't let complacency hold you back from taking action. By repairing your credit, you can save thousands of dollars in interest payments in the coming years. If you need help finding a reputable credit repair company, consider ASAP Credit Repair. With our free consultation and evaluation, we can help you restore your credit quickly and efficiently.