Greetings! My name is Joe Mahlow, and I am a well-experienced individual in the field of personal finance and credit. It brings me immense pleasure to regularly share my insights and opinions on subjects that matter to you, as well as many others who religiously follow my content. Today, I want to dive into the topic of Credit Repair for Free. Over the years, I have received various inquiries regarding this topic from both current and previous clients, so allow me to clarify some of the most common questions. First and foremost, it is important to note that you can absolutely repair your credit without spending a dime! However, I must warn you that the process can be quite challenging and may require a lot of hard work. Nevertheless, if you are willing to put in the effort, you can undoubtedly save yourself money and time. So, let's begin!
Table of Contents
Getting Credit Repair Services without Paying for ThemCredit Repair: How to Fix Your Credit for FreeUtilizing a Credit Repair Program for FreeObtaining Credit Reports for Free Credit RepairCan Credit Repair Boost My Credit Score?Wrapping it up!
Getting Credit Repair Services without Paying for Them
While some individuals or businesses may advertise free credit repair services, the truth is that there is often more to these offers than meets the eye. Anyone offering credit repair for free will expect something in return. When I first entered the credit repair industry 15 years ago, I offered free services to potential clients in order to establish myself and gather feedback in the form of testimonials. But even then, I still received compensation in the form of client reviews.
Presently, ASAP Credit Repair, my company, still provides one round of credit repair services at no cost. However, clients must first pay an enrollment fee to begin the process, so there is still technically a cost associated with the service.
But there is another way to repair your credit without spending money: doing everything on your own. While time-consuming, it's possible to dispute your credit reports independently and free of charge. However, you must be willing to invest at least one or two hours per month for several months. If you do not have the necessary time to conduct your own credit repair, you can always seek the assistance of a credit repair company or individual. Keep in mind that professional credit repair services can cost anywhere between $400-$600 on average.
Credit Repair: How to Fix Your Credit for Free
Repairing your credit on your own is not a difficult task. It can be time-consuming, but it is not as hard as people make it out to be. However, there are some things you should keep in mind when repairing your credit on your own:1. Never dispute your credit reports online.Doing so will forfeit your legal right to dispute your credit report more than once a year. Furthermore, the online dispute process is outdated and generic, resulting in ineffective results.
2. Follow the 70/30 rule.70% of your credit repair process involves researching and pulling your credit report, while the other 30% involves drafting your credit disputes.
3. Access your credit reports online.Select a reputable credit report provider, such as Identity IQ that offers the most available data to help you locate all the possible errors on your credit report.
4. Familiarize yourself with dispute laws.Get to grips with the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA), which are two laws that safeguard you as a consumer and provide guidelines to dispute your credit report.
5. Draft your own dispute letter.Creating a dispute letter is straightforward, and you don't need to follow any online guru's advice. Find the Credit Reporting Agencies Addresses (Equifax, Experian, and Transunion) and take the Creditor’s Address at the bottom of the credit report, and put them off to the side. Provide your name, address, date of birth and last four of your social number. Identify the account name and account number you are disputing, then draw up the body of the paragraph. Keep the paragraph brief and simple; request that the account be validated by providing proof of authorization, a Credit Application, and the ledger balance history showing all payments made on the account with dates and times and all monthly billing statements since the account's opening. End the letter by signing it.
6. Wait for 30 days.If you don't receive the requested documents that you disputed through the mail, send a secondary dispute letter via certified mail. Explain that you didn't receive the requested documents and would like 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. Repeat the process.Repeat the last step until you get the resolution you're looking for. If you're stuck, consider reaching out to reputable credit repair firms like ASAP Credit Repair.
When drawing up your disputes, keep it simple, and to the point. You can search for dispute template letters on Google to find a structure but never use an online template letter.
Utilizing a Credit Repair Program for Free
When starting a career in credit repair, the search for effective tools to generate streamlined dispute letters became a priority. The Credit Repair Cloud software was one option at the time and has improved significantly over the years. This software, intended for credit repair businesses, has the potential to be useful for individuals as well. By taking advantage of the free 30-day trial, users can generate their very first dispute letter at no cost. This serves as a great secondary option, as it offers a step-by-step process for credit repair and useful information on the topic in general. Additionally, Credit Repair Cloud provides a variety of dispute letters and tactics for use and different dispute reasons for customization. However, the free trial only allows access to 1st round dispute letters. If completing the entire credit repair process, users must create their own future round letters or upgrade the software for a fee. It is suggested to explore the roughly ten other credit repair software options available on the market to determine the best fit and to possibly transition to a credit repair business to assist others with their credit needs.
Obtaining Credit Reports for Free Credit Repair
To begin your credit repair journey, the essential requirement is obtaining copies of all three credit reports- Equifax, Experian, and Transunion. However, as you become more knowledgeable about credit repair, you may want to challenge the data with all credit bureaus and the data furnishers for a complete dispute, but it’s advisable to keep it simple initially.Apart from identifying derogatory accounts mentioned in your disputes, you should establish which credit report to use, as not all are equally created. Generally, most lenders approving your loan will review your Fair Isaac Corporation (FICO) report, but accessing this report is quite expensive, so obtaining it towards the end of your credit repair process is recommended. Instead, the best approach is to acquire a Vantage score report because not only is it affordable, but it also offers identical data to the FICO report.So which credit report is the most efficient for credit repair? In my opinion, the best credit report is from IdentityIQ, outperforming other credit monitoring sites. Although the data feed that gives this information is the same in other Vantage Scoring Reports, IdentityIQ provides additional data that can help identify errors on your credit report, resulting in more favorable outcomes.It’s not mandatory to use IdentityIQ as long as you are obtaining all three credit reports from a reputable credit monitoring site. However, our clients have received better results with IdentityIQ reports compared to other conventional sites.
Can Credit Repair Boost My Credit Score?
In short, yes. However, it's important to remember that credit repair is just one of the many tools available to help improve your credit scores. While it can be effective, managing and maintaining great credit and positive payment history is crucial to continuing to raise your scores. Don't fall into the trap of thinking credit repair is a cure-all solution for all credit issues unless the account contains inaccuracies or reporting errors, the chances of removing an accurate account from your credit report are slim.
What can credit repair do to boost my credit score?
1. Removing negative payment history or negative accounts can almost always lead to an increase in credit scores.
2. It's essential to have positive revolving and installment accounts reporting to maximize credit score increase.
3. Making consistent, on-time payments on your current accounts is one of the most critical components of maintaining excellent credit.
4. If you're building credit from scratch or have limited credit, starting with a secured credit card will help you develop credit quickly.
So, while credit repair can undoubtedly be effective, it is crucial to pair it with a solid credit strategy, such as maintaining established credit, timely payments, and low credit card balances, to achieve the best results.
Wrapping it up!
Throughout my 15 years in the industry, I have encountered numerous situations where people lack the motivation to begin the process of credit repair due to their uncertainty about how to proceed. My advice is to take one step forward and take action, whether it involves researching credit repair and drafting your first dispute letter or considering hiring a credit repair company to handle the work for you. Regardless of your choice, do not allow yourself to become complacent and idle. Repairing your credit today is an essential step to save yourself from paying thousands of dollars in interest in the coming years. If you are unsure of where to start looking for a Credit Repair company, feel free to explore ASAP Credit Repair and get a free consultation and evaluation from us. As a company, we understand the significance of helping clients rapidly restore and repair their credit.