If we haven't met yet, my name is Joe Mahlow, and I specialize in Personal Finance and Credit. One thing I really enjoy doing is creating informative posts on topics that matter to my readers. For today's topic, I'd like to discuss Credit Repair for Free and answer some of the most commonly asked questions I receive from clients. First and foremost, I want to make it clear that it is possible to repair your credit for free. However, I do want to remind you that while it may not cost any money, it will require a significant amount of effort and dedication on your part. That being said, if you're willing to put in the hard work, you can save yourself a good amount of both money and time. So, let's dive in!
Table of Contents
Obtaining Free Credit RepairHow to Repair Your Credit for Free: A Step-by-Step GuideUsing Free Credit Repair Software: A Feasible Option?Free Credit Repair: Obtaining a Credit ReportCan Credit Repair Boost Your Credit Score?Final Thoughts on Credit Repair
Obtaining Free Credit Repair
Obtaining free credit repair is often more complex than advertised, as companies or individuals will typically expect some form of compensation for their services. When entering the credit repair industry 15 years ago, I initially provided free services in order to gain credibility and attract future clients, but I required testimonials or reviews as a result. Nevertheless, my company, ASAP Credit Repair, which still offers one round of credit repair services entirely for free, now demands the payment of a service fee upon enrollment. It is apparent that any complimentary service will always have some form of charge associated with it.However, repairing your credit without any professional assistance is achievable but requires a significant amount of time and effort. I suggest that individuals dispute their credit reports without any additional fees, but doing so will require several hours of work per month over a three-to-five-month period. If you are unable to devote the necessary time towards credit repair, I recommend you seek out a credible Credit Repair service or company in your area that can guide you through the process. The average customer can expect to pay $400-600 for a credit repair service to handle all aspects of their credit repair.
How to Repair Your Credit for Free: A Step-by-Step Guide
Credit repair may seem daunting, but doing it on your own is not as difficult as it seems. However, it may be a bit time-consuming. It's essential to know that disputing your credit reports online is not a good idea, as it takes away your legal right to dispute your credit report more than once a year. Additionally, the dispute process is outdated and produces limited results. Here are the steps to follow to repair your credit on your own for free:
1. Access your credit reports online. Consider using Identity IQ, which provides ample information to help you spot errors.
2. Understand the dispute process. Familiarize yourself with two significant laws--the Fairy Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA)--which provide the guidelines for disputing your credit report.
3. Draft your dispute letter. Do not rely on generic templates. Google the addresses of the Credit Reporting Agencies and Creditor's Addresses at the bottom of the credit report and put them aside. Then provide your name, address, date of birth and the last four digits of your social security number. Identify the account name, account number, and provide relevant details. Keep the request straightforward, asking that the account is validated by providing evidence of the account being authorized.
4. Wait for 30 days. If they do not provide the evidence you requested, send a second dispute letter via certified mail requesting that the account be deleted or the late payment history is removed.
5. Rinse and repeat. Repeat step 4 several times.
Remember to keep your dispute simple and to the point. You can google search dispute letter structures for guidance. However, never use a template letter online. If you get stuck, feel free to reach out to ASAP Credit Repair or another reputable credit repair firm.
Using Free Credit Repair Software: A Feasible Option?
When I entered the credit repair field, I immediately sought a tool to simplify the process of creating dispute letters that could enhance customer experience. At the time, the only available option was Credit Repair Cloud software, designed to aid credit repair firms in fixing their clients' credit but can be suitable for individual use as well. The software provides a free 30-day trial period to generate dispute letters. This offers an excellent alternative to free credit repair as it facilitates a systematic repair process while providing valuable free information on credit repair. Credit Repair Cloud also offers diverse letters and tactics that help in creating personalized responses for each account. Though the free trial only avails the initial round of dispute letters, the software provides an option to upgrade or create letters manually to complete the credit repair process. There are other credit repair software options on the market, and it is essential to check them out before deciding on the most convenient one. Finally, mastering the credit repair process and making a credit repair business is not only fulfilling but also lucrative.
Free Credit Repair: Obtaining a Credit Report
To get started with credit repair, you will need a copy of all three credit reports - Equifax, Experian, and Transunion. Though in the future, you may want to dispute issues with all available credit bureaus and data furnishers, it is best to keep it simple at the beginning. Accessing your credit reports will allow you to identify derogatory accounts and list them in your disputes. However, it is important to know which credit report to use.The preferred credit report used by most lenders is the Fair Isaac Corporation (FICO) report. Though it is expensive, it is recommended to obtain it towards the end of your credit repair journey. Instead, use the more affordable and equally informative Vantage score report. This report provides the same information as the FICO report. Among the different Vantage Scoring Reports, IdentityIQ is a highly recommended credit monitoring site that provides the best credit reports. It offers more data than other sites and can help identify more errors, which leads to better results. Note that it is not mandatory to use IdentityIQ as long as you access all three credit reports from a reputable site. However, based on our clients' results, IdentityIQ's reports have shown to be the most effective.
Can Credit Repair Boost Your Credit Score?
Yes, credit repair can help improve your credit scores. However, it is crucial to note that credit repair is just one of many instruments to enhance your credit score. Managing and maintaining solid credit and payment history is equally important to continue improving your credit scores. Some people assume that credit repair can solve all their credit issues, but the truth is, unless an account is erroneous or has reporting errors, removing a legitimate account from your credit report is improbable.
So, how does credit repair help to improve your credit score?
1. Eliminating adverse payment history or negative accounts can almost always lead to an increase in your credit score.
2. However, as mentioned earlier, having positive revolving and installment accounts reporting as well is necessary; otherwise, your credit score increase may be minimal.
3. Maintaining an excellent payment history on your active account is one of the most important things you can do to maintain excellent credit.
4. If you need to build credit, start with a secured credit card as it can help you establish credit quickly.
To summarize, credit repair is an effective tool to help you enhance your credit score. Nevertheless, it's essential to ensure that you have established credit, pay your bills on time, and keep your credit card balances as low as possible. By following these steps, you can maximize the impact of credit repair on your credit scores.
Final Thoughts on Credit Repair
Over 15 years in the industry have taught me that many people don't know where to start when it comes to credit repair. Instead of being paralyzed by uncertainty, take action. There are two paths to pursue: educate yourself and begin the process of repairing your credit on your own, or hire a credit repair company to manage the process for you. Whatever you do, don't procrastinate. Taking action today will save you the expense of high-interest payments down the road. If you're not sure where to start, consider reaching out to ASAP Credit Repair for a free consultation and evaluation. We're committed to delivering fast credit repair solutions that restore our clients' financial freedom.