If we haven't met yet, my name is Joe Mahlow, and I've been involved in Personal Finance and Credit for some time now. I'm passionate about creating informative posts that are valuable to you and the rest of my audience. Today, I'm going to dive into the topic of Credit Repair for Free by addressing some common questions that I've received from many clients. It's definitely possible to repair your credit without spending money, but I want to caution you that it will require some hard work on your part. However, if you're willing to put in the time and effort, you can certainly save yourself both money and time. So, let's get started!
Table of Contents
How to Obtain Free Credit Repair ServicesTips to Repair Your Credit for Free on Your OwnUsing Free Credit Repair Software: Is It Worth It?Obtaining Free Credit Repair Through Your Credit ReportCan Credit Repair Boost My Credit?Let's Conclude!
How to Obtain Free Credit Repair Services
Generally, obtaining free credit repair services from an individual or company may entail more than what their advertisement advertises. Unless they are assured of a return, no person or business is willing to fix your credit at no cost. Offering free services to clients in exchange for testimonials is a strategy used by credit repairers in their early days. Currently, ASAP Credit Repair, a company established over fifteen years ago, offers one round of free credit repair services to those who sign up and pay a particular fee. However, it is essential to note that free services come with a cost.If you want to repair your credit on your own, you can do so for free, but it will require allocating sufficient time to it. Disputing your credit reports for free is a recommended strategy, but it demands at least 1-2 hours per month for the next 3-5 months to accomplish credit repair adequately. If time is not available,or one cannot do their credit repair, hiring a credit repair company or service provider is advised. The cost of credit repair services ranges from $400-600 on average for typical clients.
Tips to Repair Your Credit for Free on Your Own
Having bad credit doesn't have to last forever. You can repair your credit on your own with a little time and effort. It is not as challenging as it may seem initially, but it can be tedious to follow through. Here are some tips to help you get started:
1. Don't Dispute OnlineAvoid online credit report disputes as they limit your legal right to dispute your credit report more than once a year. In addition, the dispute process is generic, outdated, and gets fewer effective results.
2. Allocation of TimeAllocating your time in proper order is essential in the credit repair process. The process is 70/30, meaning seventy percent of your time should focus on researching and pulling your credit report, while thirty percent of your time should focus on drafting up your credit disputes.
3. Steps to Repairing Credit for FreeHere is a simple list of steps that you can follow to repair your credit on your own for free:
- Access your credit reports online! Check out a credit report provider which offers an in-depth, more available database like Identity IQ.
- Understand disputing: Your legal right lies within two laws that protect you as a consumer; the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA)
- Draft up your dispute letter: Avoid listening to misleading advice from online sources. Drafting up a dispute letter is simple and easy. Use the Credit Reporting Agencies Addresses and the Creditor’s Address at the bottom of the credit report and include your information such as name, address, date of birth, and last four of your social. The body of the paragraph should request the creditor to provide proof of the account being authorized, such as a Credit Application, ledger balance history, all payments made on the account with dates and times, and all monthly billing statements.
- Wait for 30 days: If they don't provide the documents you requested, send a secondary dispute letter via mail explaining that you want the account deleted or the late payment history removed.
- Repeat: If necessary, repeat the previous step until you get the resolution you need. If you get stuck, you can reach out to ASAP Credit Repair or other reputable credit repair firms.
Remember to keep your dispute letter simple and straightforward. A quick Google search can provide you with dispute templates to see how to structure your disputes but never use any template letter online.
Using Free Credit Repair Software: Is It Worth It?
As someone new to the credit repair industry, I initially had trouble creating effective dispute letters that would streamline the customer experience. After researching my options, I discovered Credit Repair Cloud – a software designed to help credit repair companies assist their clients in improving their credit scores. However, individuals can actually benefit from using this software as well. With a free 30-day trial, you can generate your very first dispute letter using the software. This is an excellent option for those looking to save money and embark on the credit repair process on their own. The software offers step-by-step guidance and useful information on credit repair. Furthermore, Credit Repair Cloud provides a wide variety of dispute letters, tactics, and reasons, which can be customized to fit the specific account in question. It should be noted that if you are using the free trial of the software, only the 1st round of dispute letters will be accessible. To complete the credit repair process, future round letters must be created manually, or a software upgrade must be purchased. There are multiple other credit repair software options available on the market, so it’s worth exploring to find the best fit for your needs. Who knows, you might gain enough expertise from this experience to start your own credit repair business and help others improve their credit too!
Obtaining Free Credit Repair Through Your Credit Report
To kickstart your free credit repair journey, your first step should be obtaining copies of your three credit reports: Equifax, Experian, and Transunion. Though as you progress, you may want to dispute with all credit reporting agencies and data furnishers, it's best to start with a simple approach.It's crucial to access your credit reports to identify derogatory accounts and use them to your advantage. The question is, which report should you use? The answer is straightforward - yes, there is a preference. Different reports hold varying values, and it's essential to select the one that benefits you the most.Providers of Fair Isaac Corporation (FICO) Reports impose a high cost, making them less accessible. Instead, the best option is to obtain a Vantage score report, which is significantly cheaper and offers the same information as a FICO report. From experience, IdentityIQ provides the best credit reports as it provides additional data, thus allowing us to identify more errors on your credit report effectively.Though it's not mandatory to use IdentityIQ, accessing all three credit reports from a reputable credit monitoring service will suffice. We found that our clients' results were optimal when using IdentityIQ over other traditional sites.
Can Credit Repair Boost My Credit?
Yes, credit repair can improve your credit, but it is just one element that affects your credit scores. To further improve your credit, it is crucial to maintain strong, established credit and a consistent payment history. Credit repair alone cannot resolve all of your credit issues, particularly if an account is accurate and free of reporting errors.
How does credit repair help improve your credit score?
1. Eliminating negative payment history or negative accounts typically increases credit scores.
2. However, unless you also have positive revolving and installment accounts reporting, gains may be marginal.
3. Maintaining a good payment history on your existing accounts is one of the most effective ways to maintain superior credit.
4. If you need to build credit, consider a secured credit card, which can help you establish creditworthiness quickly.
In conclusion, credit repair can be a powerful tool for raising your credit scores. However, a solid credit foundation, timely payments, and low credit card balances are also critical in making credit repair effective.
Let's Conclude!
Throughout my 15 years in the industry, I have witnessed various situations where people did not take the initiative to start the credit repair process simply due to a lack of knowledge. It is best to take the first step and take action by either educating yourself on credit repair and drafting your initial dispute letter or exploring the option of hiring a credit repair company to tackle all the work for you. The key is to not become complacent and do nothing. By taking control and repairing your credit today, you can save thousands of dollars in interest payments over the next few years. If you are unsure where to begin, reach out to ASAP Credit Repair for a free consultation and evaluation. We understand the significance of quick, reliable credit repair services and are here to help you repair and restore your credit.