If we haven't had the pleasure of meeting yet, my name is Joe Mahlow, and for years I have been active in the Personal Finance and Credit sphere. One of my favorite things to do is to craft detailed articles on pertinent topics that can help others better understand and manage their finances. Today's topic is Credit Repair for Free, which is a hotly-contested subject among my current and past clients. The truth is, yes, it is possible to repair your credit for nothing, but it requires hard work and dedication. However, if you're willing to put in the time and energy, you can save yourself a tremendous amount of money and effort. Let's dive in and explore this topic together.
Table of Contents
Obtaining Credit Repair for Free: The TruthSteps to Repair Your Credit on Your Own for FreeUsing Free Credit Repair SoftwareFree Credit Repair: Obtaining and Choosing Credit ReportsThe Effectiveness of Credit Repair on Improving Credit ScoresTips to Get Your Credit Back on Track
Obtaining Credit Repair for Free: The Truth
It's a common misconception that reputable credit repair services are available for free. If a person or company claims to offer free credit repair, there may be a catch involved that's not immediately apparent. In my early days in the credit repair industry 15 years ago, I wanted to get the word out about my services, so I provided free services to some clients in exchange for testimonials. That being said, my clients still had to put in the effort to provide feedback. Currently, my firm - ASAP Credit Repair - offers a free round of services, but you still have to enroll and pay the service fee to get started. This free service still comes with a cost.However, you don't have to pay someone to repair your credit. You can do it yourself for free, but it requires some time and dedication. I recommend that individuals dispute their credit reports themselves without any charge. Yet, it may take up to 1-2 hours per month for 3-5 months to obtain complete credit repair this way. If you don't have the time to do it yourself, consider using a credit repair service or company nearby. Credit repair can typically cost $400-600 for the average customer if they want someone to do all the work on their behalf.
Steps to Repair Your Credit on Your Own for Free
Repairing your credit on your own is an easy task and not as complicated as people think. The following are steps you can take to repair your credit on your own for free.
1. Be careful about disputing your credit reports online. By disputing online, you give up your legal right to dispute your credit report more than once a year. The dispute process is also outdated, and using it might prevent you from getting effective results.
2. The credit repair process is 70/30, meaning that 70% of your time is spent researching and pulling your credit report, while the remaining 30% is spent creating your credit disputes.
3. The first step to repairing your own credit is to access your credit reports online. I recommend using Identity IQ, which provides the most available credit report data.
4. Make sure you understand what disputing means. Get familiar with the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) to understand your legal rights as a consumer and the guidelines for disputing your credit report.
5. Draft your own dispute letter; do not rely on advice from online credit gurus. Creating a dispute letter is simple. Google the Credit Reporting Agencies' addresses (Equifax, Experian, and Transunion), take the Creditor's Address at the bottom of the credit report, and put it aside. Then, provide your name, address, date of birth, and the last four of your social on the letter. Identify the account name and account number you're disputing and write the body of the paragraph. Keep it simple and request that the account be validated with proof of authorization. Conclude the letter and sign it.
6. Wait for 30 days to see if the agencies provide proof of the account's authorization. If they don't, send a secondary dispute letter via certified mail explaining you did not receive the documents requested and 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).
7. Rinse and repeat until you get the desired resolution. If stuck, you can use the services of reputable credit repair firms like ASAP Credit Repair.
Remember to keep your dispute letter simple and to the point. Look for dispute template letters by doing a Google search, but never use any template letter online.
Using Free Credit Repair Software
When I was new to the credit repair industry, my first task was to find a tool to assist me in crafting effective dispute letters, streamlining the overall experience for my clients. The Credit Repair Cloud software was the only option available at that time, and since it was created to help credit repair companies in fixing their client's credit, it can be a great tool for individuals, too. The software offers a free 30-day trial that allows you to produce your first dispute letter, making it an astonishing secondary option if you are looking to repair your credit on your own. Besides guiding you step by step through the credit repair process, the software provides comprehensive information about credit repair in general. Additionally, Credit Repair Cloud offers various dispute letters, tactics, and dispute reasons that can help you customize your dispute responses to the actual account. However, please note that the free software trial allows access only to their first-round dispute letters. So, to complete your credit repair process, you will need to generate your own future round letters manually or upgrade the software by paying a fee.If you feel that the Credit Repair Cloud software is not a good fit for you, don't hesitate to explore the other ten credit repair software on the market and pick your best match. Once you master the credit repair process, you can turn it into a business and help others improve their credit.
Free Credit Repair: Obtaining and Choosing Credit Reports
In order to repair your credit for free, it is essential that you obtain a copy of your credit reports from all three bureaus - Equifax, Experian, and Transunion. As you progress in your credit repair journey, you may want to dispute inaccuracies with all the credit reporting agencies and data furnishers, but it is suggested that you start out with a simple approach.Accessing your credit reports allows you to identify negative accounts that you should address in your disputes. Additionally, choosing the right report is equally important. Although any credit report may be pulled by lenders, Fair Isaac Corporation (FICO) reports are preferred due to their accuracy and thoroughness. However, obtaining FICO reports can be cost-prohibitive. A more affordable alternative is Vantage score reports which offer similar data.IdentityIQ is a highly recommended credit monitoring site that offers the best Vantage score reports, providing more information than other traditional Vantage scoring reports. While it is not mandatory to use IdentityIQ, their reports have proven to yield higher results for clients. It is essential to utilize reputable credit monitoring sites that provide access to all three credit reports, irrespective of their choice of the scoring system.
The Effectiveness of Credit Repair on Improving Credit Scores
In short, credit repair can indeed help improve your credit score. However, it is important to note that credit repair is just one of the tools that can aid in improving your credit scores. Managing and maintaining a solid payment history and established credit is equally important in advancing your credit scores. Most people believe that credit repair can permanently resolve their credit issues, whereas, in actuality, it is unlikely to remove an accurate account from your credit report unless it contains reporting errors.
So, what does credit repair specifically help with to improve credit scores?
- Eliminating negative payment history or accounts will likely boost your credit score.
- However, having positive revolving and installment accounts reporting is also necessary to ensure significant credit score improvement.
- Maintaining positive payment history on active accounts is crucial for maintaining strong credit.
- If you need to build credit, it is recommended to start with a secured credit card.
In conclusion, credit repair is a highly effective tool in improving credit scores; however, a solid payment history, established credit, and maintaining low credit card balances are equally important factors to help ensure the best results from credit repair.
Tips to Get Your Credit Back on Track
Having worked in the industry for 15 years, I've seen many people who want to repair their credit but have no idea where to start. The key is to take the initiative by taking the first step, no matter how small, in repairing your credit. Here are a few suggestions:
- Learn about credit repair and create a dispute letter.
- Consider hiring a credit repair service to do the work for you.
- Don't become complacent and do nothing.
By taking action towards repairing your credit, you can save thousands of dollars in paid interest over the next few years. If you're not sure where to start or you want help with your credit, consider checking out ASAP Credit Repair. We offer a free consultation and evaluation and are dedicated to helping our clients repair and restore their credit quickly.