My name is Joe Mahlow, and I am here to provide you with helpful information about credit repair for free. It is possible to repair your credit without paying for any services, but be aware that it will require a lot of effort on your part. With that said, I am here to address common questions and concerns that I have encountered throughout my experience in the Personal Finance and Credit space. By reading this post, you can learn how to save time and money while repairing your credit. So, let's dive into the topic of Credit Repair for Free.
Table of Contents
How to Obtain Credit Repair Services at No CostRepairing Your Credit On Your Own For FreeUsing Free Credit Repair Software: What You Need to KnowObtaining Free Credit Repair Using Your Credit ReportCan Credit Repair Boost My Credit Score?The Importance of Taking Initiative in Credit Repair
How to Obtain Credit Repair Services at No Cost
Usually, when someone or a company advertises that they offer free credit repair services, there is a catch. They may not be charging any upfront fees, but there are hidden costs that may not be disclosed initially. In most cases, credit repair services come at a cost, and no company will provide these services for free. However, when I first started in the credit repair business over fifteen years ago, I had no clients, and offering my services for free was the only way to get my name out there and prove my expertise to potential customers. But even then, I expected clients to provide me with testimonials and reviews, placing a cost on these free services.
Fifteen years later, my company, ASAP Credit Repair, still offers free credit repair services, but individuals have to pay a service fee to enroll and take advantage of a single round of services entirely free of charge. In essence, "free" credit repair work comes with its costs.
If you have the time to spare, you could repair your credit yourself, which is entirely free. The crucial thing is to allocate sufficient time to dispute the entries on your credit report manually. To repair your credit, you should be willing to set aside at least one or two hours per month for the next three to five months to complete the necessary steps. However, if you cannot find the time to handle your own credit repair, finding a reputable credit repair service or company near you is advisable. On average, credit repair typically costs $400-$600 for the standard customer for a third party to handle everything.
Repairing Your Credit On Your Own For Free
Repairing your credit on your own can be time-consuming but not as hard as many people think. The key advice is to never dispute your credit reports online. There are better ways to do it. The credit repair process involves 70% research and credit report analysis and 30% drafting credit disputes. To help you repair your credit yourself, here are some steps to follow:
1. Access your credit reports online.We recommend using Identity IQ as it provides the most available data.
2. Understanding disputing.You need to know two laws that protect consumers and provide guidelines for disputing credit reports: The Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA).
3. Draft your dispute letter.Create a dispute letter using your own words, putting down all necessary details of the disputed account. Request validation by asking for proof of the account being authorized, such as a Credit Application, the ledger balance history showing all payments made on the account with dates and times, and all monthly billing statements provided since the opening of the account.
4. Wait 30 days.If they do not provide the proof you requested by mail, send a secondary dispute letter via certified mail. Explain that you didn't receive the requested documents and want the account deleted if it's a charge-off or collection or late payment history removed if it's an account with late payments.
5. Rinse and repeat.Repeat step 4 as many times as necessary. If you face any difficulty, contact ASAP Credit Repair or a reputable credit repair company.
Remember, when drafting your own disputes, keep the letter simple and to the point. At the same time, never use any template letter online.
Using Free Credit Repair Software: What You Need to Know
1. When entering the credit repair industry, finding a tool to help create effective dispute letters seemed like a natural first step.
2. Credit Repair Cloud was the only option available at that time, but it has since evolved into software that can be used not only by credit repair companies but also by individuals looking to repair their credit.
3. Credit Repair Cloud offers a 30-day free trial which allows users to generate their first dispute letter for free. This software provides access to step-by-step credit repair process, dispute letters, and tactics, as well as information on credit repair in general.
4. Credit Repair Cloud provides different dispute letters and tactics, as well as different dispute reasons to customize responses to specific accounts. However, only the 1st round of dispute letters is available during the free trial, and additional rounds of letters must be manually created or paid for by upgrading the software.
5. There are other credit repair software options available, so it's recommended to explore and find one that best fits your personal needs. Who knows, maybe you will find success with this process and even start your own credit repair business to help others fix their credit.
Obtaining Free Credit Repair Using Your Credit Report
The first essential step towards credit repair without paying a penny is acquiring all three credit reports, namely Equifax, Experian, and Transunion. As you progress towards learning more about credit repair, dealing with all the available credit reporting agencies and data furnishers can become necessary, but it is better to keep it simple in the beginning. Accessing your credit reports is imperative to determine the derogatory accounts that you should list in your disputes. The question is, which credit report should you use?
The answer is yes; some credit reports are preferable to others. It is crucial to understand that not all credit reports are equal- in general, lenders who sanction loans will assess a Fair Isaac Corporation (FICO) report. However, as there is a high cost associated with accessing this report, we suggest not opting for it at the beginning of your credit repair services- initially, it is best to obtain the best Vantage score report. Not only is this less expensive, but it also provides the same data as a FICO report.
You must be wondering who to choose for the most effective credit repair credit report. Based on our experience, IdentityIQ offers the best credit reports over any other credit monitoring site. The same data feed provides this information as other Vantage Scoring reports. However, IdentityIQ provides more data, which allows you to identify more errors on your credit report, which yields the best results!
It is not necessary to use IdentityIQ as long as you access all three credit reports from a reputable credit monitoring site. However, we have observed that our clients' results tend to be higher with IdentityIQ reports than with any other traditional site.
Can Credit Repair Boost My Credit Score?
In brief, yes. However, credit repair is just one piece of the puzzle when it comes to improving your credit scores. It's vital to ensure that you handle and sustain a good payment history and establish a strong credit score to keep improving your scores. Many individuals believe that credit repair will entirely solve their credit issues. In all honesty, unless there are inaccuracies or errors in the account's reporting, the chances of removing an accurate account from your credit report are slim.
So, what can credit repair do to help boost your credit score?
1. Eliminating negative payment history or adverse accounts will nearly always improve your credit score.
2. In addition, you must have favorable revolving and installment accounts reporting; otherwise, your credit score increase may be minimal.
3. Maintaining a good payment history on your active accounts is crucial to maintaining an excellent credit score.
If you have limited credit, I highly recommend starting with a secured credit card to quickly establish credit.
To sum up, credit repair is a valuable tool to help enhance your credit score. Still, it's essential to establish good credit, make timely payments, and keep your credit card balances low to ensure that credit repair has the most significant impact on your credit scores.
The Importance of Taking Initiative in Credit Repair
Having worked in the industry for 15 years, I have witnessed countless situations where individuals are discouraged from initiating the credit repair process due to their lack of knowledge. However, taking that first step is crucial. It can be as simple as educating yourself about credit repair or seeking help from a professional credit repair organization. The worst thing you can do is to become complacent and not take any action at all. Remember, repairing your credit today can potentially save you thousands of dollars in interest payments in the future. If you are unsure of where to start, take advantage of ASAP Credit Repair's free consultation and evaluation. At ASAP Credit Repair, we understand the importance of promptly restoring our clients' credit.