If we haven't met yet, my name is Joe Mahlow. I specialize in Personal Finance and Credit, and I enjoy using this platform to communicate with you and the countless others who follow my content. Today, I'd like to talk about Credit Repair for free. It's a topic that generates a lot of interest and often elicits questions from both present and previous clients.
First, I want to be clear that it's possible to repair your credit for free. However, be prepared for a lot of work because being free usually means investing your own time and energy. But, if you're willing to put in the effort, you can save time and money. So, let's dive in!
Table of Contents
How to Obtain Free Credit Repair Services
How can I repair my credit for free on my own?
Can I Utilize a Credit Repair Software for Free?
Obtaining Your Credit Reports for Free Credit Repair
Can Credit Repair Boost My Credit Score?
Let's Conclude!
How to Obtain Free Credit Repair Services
Generally, when an individual or business advertises free credit repair services, there is more to their offer than meets the eye. No company or individual will be willing to repair your credit for free without expecting anything in return. In the early days of my credit repair career, I had no clients, and I realized that the only way to showcase my services was to offer some clients free credit repair services. However, I also needed the clients to leave feedback on their experience, a testimonial of my services. My company, ASAP Credit Repair, still offers free credit repair services, but only for one round of service. However, clients must enroll and pay the service fee to kickstart the credit repair process. In essence, free always comes with a hidden cost.
If you can allocate time, you can repair your credit at any cost. I recommend disputing your credit reports free of charge, but you must set aside at least 1-2 hours per month in the next 3-5 months to finalize the credit repair process. However, if you do not have the time to conduct the credit repair yourself, it's ideal to find a Credit Repair company or service to help. Credit repair assistance can cost a typical client an average of $400-$600 to complete all the necessary credit repair tasks.
How can I repair my credit for free on my own?
Repairing your credit by yourself is a simple, although time-consuming, task. While it requires considerable effort, it is not as difficult as it sounds. The primary piece of advice that we have here is to avoid online credit report disputes. By doing it online, you waive your legal right to dispute credit reports for an entire year. Besides, the process is generic, outdated, and ineffective, resulting in low success rates.
The credit repair process follows a 70/30 rule, meaning that 70% of the time is spent researching and pulling your credit report, while only 30% is dedicated to drafting credit disputes. Here are the steps you need to follow to repair your credit yourself for free:
Obtain your credit reports online
To find and correct all of your credit report errors, you should use a credit report provider with access to the most extensive possible data. Our recommendation is to use IdentityIQ.
Comprehend what disputing means
You should be familiar with two regulatory guidelines that safeguard the legal rights of customers to dispute their credit reports. The Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) are such laws, and you should know your rights under them.
Draft your personal dispute letter
You shouldn't take advice from people claiming to be gurus online. To create a dispute letter, use cloud computing or paper and pencil. Look up the addresses of the credit reporting agencies (Equifax, Experian, and Transunion) and place the creditor's address on one side of the credit report. Then, on the letter, put your name, address, birth date, and the last four digits of your social security number. Next, specify the account name and number you are disputing and write up the paragraph's body. In this chapter, keep it simple and ask that they validate the account by providing proof of authorization, such as a credit application, the ledger balance history with the account's payment record and times, and all monthly billing statements submitted to you since the account was opened. Finally, finish the letter and sign it.
Wait for 30 days
If they fail to send the documentation that was requested by mail for each disputed account, submit a new dispute letter via certified mail stating that you did not receive the requested documents and want the account removed (if it's a charge-off or collection) or the late payment history erased (if it's a late payment account).
Rinse and repeat
If you do not receive the desired outcome through writing several dispute letters, continue the last step as many times as necessary until you get the desired resolution. If you want additional assistance, we highly recommend contacting ASAP Credit Repair or another reputable credit repair firm.
As far as independent disputes are concerned, keep it clear and to the point. You can look up dispute template letters on Google to see a structure, but avoid using any internet template letter.
Can I Utilize a Credit Repair Software for Free?
At the beginning of my career in credit repair, I searched for a tool that could assist me in generating effective dispute letters and streamlining my clients' experience. I found the credit repair cloud software, which was initially developed to aid credit repair companies in assisting their clients. However, this software can also be utilized by individuals at no cost when availing of their free trial for 30 days. This amazing secondary option allows individuals to go through the credit repair process easily, step by step and provides excellent information on credit repair. The software offers an array of dispute letters and tactics that can assist individuals in catering their dispute responses to the actual account itself. However, it is important to note that the free trial only allows access to the 1st round of dispute letters, and users will have to create their future round letters or upgrade the software to complete their entire credit repair process. One can explore other credit repair software options available in the market to see which one suits them best while acquiring knowledge to potentially make credit repair a business and help others fix their credit.
Obtaining Your Credit Reports for Free Credit Repair
To effectively repair your credit, obtaining copies of all three credit reports (Equifax, Experian, and TransUnion) is mandatory. While eventually, you may choose to dispute with all the available credit reporting agencies and data furnishers, it is recommended to start with a simple approach. Accessing your credit reports allows you to identify the derogatory accounts to focus on in the dispute. However, it is important to know which credit report to use.
The short answer is that there is a preference. Most lenders typically approve loans from the Fair Isaac Corporation (FICO) report. However, accessing this report can be costly, so obtaining it at the end of your credit repair services is recommended. Instead, the Vantage score report is recommended, as it is less expensive and provides the same data as the FICO report.
IdentityIQ is recommended for the most effective credit repair among the various credit monitoring sites. While the data feed for this site is the same as other Vantage Scoring Reports, IdentityIQ provides additional data that can help identify more errors on your credit report. However, it is not mandatory to use IdentityIQ as long as you are accessing all three credit reports from a reputable credit monitoring site. Our analysis shows that our clients usually get better results with IdentityIQ reports than any other traditional site."
Can Credit Repair Boost My Credit Score?
Yes, credit repair can improve your credit score, but it is just one of the tools available to help you do so. It is important to maintain good credit and payment history, along with credit repair, to continue advancing your credit score. Some people believe credit repair will fix their credit issues, but this is not true unless the account contains inaccurate information or reporting errors.
Here's how credit repair can help improve your credit score:
1.Removing negative payment history or accounts almost always helps increase your credit score, but having positive revolving and installment accounts correctly reporting is also essential to maximize credit score improvement.
2.Maintaining good payment history on your active accounts is critical to maintaining excellent credit scores.
3.If you need to build credit, consider starting with a secured credit card, which will help you establish credit quickly.
Remember, credit repair alone may not completely fix your credit issues. Keeping your credit card balances low and paying your payments on time can help credit repair to have the best impact on your credit score.
Let's Conclude!
Throughout my 15 years in the industry, I have encountered various scenarios where individuals lacked the motivation to embark on the credit repair process due to a lack of know-how. My recommendation is simple; take the initial step by either educating yourself on credit repair and drafting a dispute letter or consider seeking assistance from a credit repair company to handle the heavy lifting. Whatever your decision, avoid complacency and inactivity while taking action today to secure a brighter financial future. By taking the initiative to repair your credit now, you can save yourself substantial money in interest payments in the coming years. If you need help deciding on a Credit Repair company, check out ASAP Credit Repair for a free consultation and evaluation. We understand the urgency of repairing and restoring your credit quickly.