If we haven't met yet, my name is Joe Mahlow, and I specialize in Personal Finance and Credit. I really enjoy writing about topics that are relevant and important to my followers. Today, I wanted to address the topic of Credit Repair for Free. I often get asked by clients, both current and former, if it is possible to repair credit for free. The answer is yes; however, it does require a lot of hard work. But, if you're committed to putting in the effort, you can save yourself both time and money. So, let's dive into it.
Table of Contents
Guidelines for Obtaining Free Credit RepairRepair Your Credit for Free: Steps to FollowUsing Free Credit Repair Software: Is it Possible?Free Credit Repair: Obtaining Your Credit ReportCan Credit Repair Boost Your Credit Score?Wrapping Up Credit Repair
Guidelines for Obtaining Free Credit Repair
Although some companies may advertise free credit repair, there is typically more to the story. It is unlikely that any business or individual will offer to repair your credit for free without some form of compensation in return. In fact, many credit repair services may offer a free service round, but only if clients enroll and pay for a service fee.During my initial foray into the credit repair field over 15 years ago, I provided free services to clients in exchange for testimonials. While the service was free of charge to clients, they were required to take the time to provide me with feedback. My company, ASAP Credit Repair, still offers one free service round, but clients must enroll and pay a service fee before they can access it.Repairing your credit on your own is an option that does not incur a financial cost, but it does require a significant investment of time. Disputing your credit reports for free is a recommended course of action, but completing the necessary steps for credit repair can take 1-2 hours a month for 3-5 months. If you lack the time or resources to undertake credit repair independently, consider seeking out a reputable credit repair service or company. On average, professional credit repair services usually charge $400-600 for their services.
Repair Your Credit for Free: Steps to Follow
If you want to repair your credit on your own for free, it can take some time, but it isn't as difficult as you might expect. However, there are specific guidelines you should follow that can make the repair process more effective. Here are the key steps to follow:
1. Avoid Disputing OnlineNever dispute your credit reports online; it's better to do it through the mail. By disputing your credit report online, you may only have the legal right to dispute it once in a year. Besides, the dispute process is outdated, and it will take longer to get results.
2. Understand Your Legal RightsBecome familiar with the two laws that protect you as a consumer and provide the guidelines in which you can dispute your credit report. These laws are the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA).
3. Access Your Credit Report OnlineGetting your credit reports online is crucial. Use a credible credit report provider, such as Identity IQ, that provides the most accessible data, enabling you to find all the possible errors on your credit report.
4. Draft Up Your Dispute letterIgnore any advice from online gurus. Drafting up your dispute letter via Google Docs or paper and pencil is relatively simple. Google the Credit Reporting Agencies Addresses (Equifax, Experian, and Transunion) and take the creditor's address at the bottom of the credit report, and put it aside. In your dispute letter, provide your personal information, and identify the account name and the account number you're disputing. Request that the account be validated by providing proof of the account being authorized. Conclude the letter and sign it.
5. Wait 30 DaysIf the Credit Reporting Agency does not provide the documents that were requested within 30 days, send a secondary dispute letter via certified mail requesting to remove the account (if it's a charge-off or collection) or delete the late payment history (if it's an account with late payments).
6. Rinse and RepeatRepeat Step 5 until you achieve the desired resolution. If you get stuck, consider reaching out to a reputable credit repair firm like ASAP Credit Repair.
Remember to keep your dispute letters simple and straightforward; you can check the template letters online to see the structure but never use someone else's letter.
Using Free Credit Repair Software: Is it Possible?
When I first entered the credit repair industry, I was on the lookout for a tool that could assist me in crafting effective dispute letters. This would streamline the experience for my clients and enable me to provide them with better service. Back then, the only option available was the credit repair cloud software, which has since evolved. This software was created to assist credit repair companies in aiding their clients' efforts to fix their credit, but it can also be utilized by individuals. The company offers a free 30-day trial, which provides access to their software for generating your first dispute letter. If you are looking to undergo your own credit repair process without spending a dime, this is an excellent alternative that takes you through each step of the credit repair journey. Furthermore, Credit Repair Cloud offers a plethora of dispute letters and tactics to improve the efficiency and effectiveness of your efforts. They also provide different dispute reasons that can help you tailor your disagreement responses to the applicable account. But here is a full disclosure; if you are solely using the free trial, you can only access their 1st round dispute letters. As such, to complete your entire credit repair process, you will have to manually craft your own future round letters or upgrade the software by paying. Review other credit repair software available in the market, as there are roughly ten varying options, to determine the best fit for your needs. And remember, once you understand the ins and outs of the process, you can make it a Credit Repair Business and assist others in restoring their credit.
Free Credit Repair: Obtaining Your Credit Report
In order to start repairing your credit for free, you will need a copy of all three credit reports from Equifax, Experian, and Transunion. When starting out, it's important to keep things simple and focus on disputing with all available credit reporting agencies and data furnishers. Accessing your credit reports will allow you to determine the derogatory accounts you will list in your disputes.The most important question is which credit report to use. The answer is yes; there is a preference. The Fair Isaac Corporation (FICO) report is the most commonly used by lenders, but it is expensive. It's recommended to use the best Vantage score report instead. This report will give you the same data as a FICO report at a much lower cost.IdentityIQ is the recommended choice for obtaining credit reports as it provides the most comprehensive data among credit monitoring sites. Although it uses the same data feed as other Vantage Scoring Reports, IdentityIQ includes additional data that can help you identify more errors. While it's not mandatory to use IdentityIQ, their reports have been shown to produce better results for clients than any other traditional site.
Can Credit Repair Boost Your Credit Score?
Yes, credit repair can have a positive impact on your credit score, but it is just one of several tools that can aid in the effort to improve your financial profile. Maintaining solid payment history and a healthy level of active credit are both crucial factors as well. While credit repair is often mistakenly viewed as a cure-all for credit troubles, the reality is that inaccurate or erroneously reported accounts are the only ones that can truly be eliminated.
Here are some ways that credit repair can benefit your credit score:
1. Removing negative payment history or accounts can have an immediate and significant impact on your credit score.
2. It is essential to have positive revolving and installment accounts reporting as well. Otherwise, any increase in your credit score may only be minimal.
3. Always ensure timely payment history on all your active accounts. This behavior is key to maintaining great credit.
4. If you need to build credit, consider starting with a secured credit card to establish this aspect of your financial profile quickly.
In summary, credit repair is very effective, but it should be used in conjunction with sound financial practices. Make sure that you have established credit, pay your bills on time, and keep your credit card balances low to experience the best results from credit repair.
Wrapping Up Credit Repair
In my 15 years of experience in the industry, I have witnessed numerous people struggle to begin the credit repair process due to a lack of knowledge on where to start. To avoid complacency, I suggest taking action by either learning about credit repair and drafting your first dispute letter or hiring a credit repair company to ease the burden. Remember, inaction only leads to negative consequences. By taking control of your credit today, you could potentially save thousands of dollars in paid interest within the next few years. If you find yourself unsure of where to begin searching for a credit repair company, check out ASAP Credit Repair for a free consultation and evaluation. At ASAP, we understand the importance of helping clients efficiently repair and restore their credit.