If we haven't met before, my name is Joe Mahlow, and I've spent a considerable amount of time in the personal finance and credit industry. I find pleasure in writing about topics that are important to my followers along with me. Today, I'd like to kick off this discussion on Credit Repair for Free by addressing the most frequently asked questions I receive from clients. The good news is it's possible for you to repair your credit for free, but it will require a fair amount of work. However, if you're willing to put in that effort, you'll be able to save both time and money. So, let's jump in!
Table of Contents
Tips for Obtaining Credit Repair without Breaking the BankA Simple Guide to Fixing Your Credit for FreeUsing Free Credit Repair Software: A Viable Option?Getting Your Credit Report for Free Credit RepairCan Credit Repair Improve My Credit Score?Wrap it Up: Take Action to Repair Your Credit Today
Tips for Obtaining Credit Repair without Breaking the Bank
While it might be tempting to believe that someone somewhere is offering free credit repair services, that isn't always the case. In most cases, if you're not paying for the service, you are the one being sold. When I first started in the credit repair industry over 15 years ago, I knew that I needed to build my client base and get my name out there, so I took on a few free clients. Although they weren't paying me, I was still getting something valuable from them—testimonials and reviews.Today, my company, ASAP Credit Repair, still offers one round of credit repair services for free. However, this offer comes with a catch—you still have to enroll and pay the service fee to get started. As the saying goes, "There's no such thing as a free lunch."If you have the time and the inclination, you can repair your credit on your own without spending any money. One of the simplest ways to do this is by disputing any errors on your credit report. It's a free process, but it can take months of effort. To complete it, you'll need to set aside 1-2 hours per month for the next 3-5 months. However, if you don't have the time or the know-how to repair your credit on your own, you'll need to find a credit repair service or company to help you. Keep in mind that doing so can set you back $400-600 on average.
A Simple Guide to Fixing Your Credit for Free
When it comes to repairing your credit, doing it yourself is not difficult, but it can be time-consuming. However, there are certain things that you should keep in mind to help you achieve effective results. Below are some crucial steps to guide you in repairing your credit on your own for free.
1. Avoid Disputing Credit Reports OnlineDisputing your credit reports online can be a disadvantageous move as it forfeits your legal right to dispute your credit report more than once in a year. Furthermore, the online dispute process is obsolete and less effective.
2. Research and Pull Your Credit ReportDoing credit repair is usually 70/30, which means you need to spend seventy percent of your time performing research and evaluating your credit report. The other thirty percent of your time will be devoted to drafting your credit disputes.
3. Access Your Credit Reports OnlineUsing a credit report provider like Identity IQ is highly recommended since it offers a vast amount of data to enable you to find all possible errors on your credit report.
4. Know the Fair Credit Reporting Act and the Fair Debt Collection Practices ActHaving an understanding of these two laws, which protect you as a consumer and provide guidelines on how to dispute your credit report, is crucial.
5. Write a Dispute LetterWriting a dispute letter is relatively straightforward. Google the Credit Reporting Agencies Addresses and take the Creditor’s Address at the bottom of the credit report and include them in the letter. Also, provide your details, account name, account number, and the body of the paragraph where you request that the account should be validated. Sign the letter when you're done.
6. Wait for 30 DaysIf the agencies do not provide the proof of each account disputed via mail and you want the account deleted (If it's a charge-off or collection) or want the late payment history removed (If it's an account with late payments), send a secondary dispute letter via certified mail.
7. Repeat as NeededConsistently repeat the whole process until you achieve the repair resolution you desire. If you get stuck, it is advisable to consult a reputable credit repair firm like ASAP Credit Repair.
When drafting your dispute letter, remember to keep it simple and straightforward, and refrain from using any template letter online.
Using Free Credit Repair Software: A Viable Option?
When I first entered the credit repair industry, I sought out a tool that would enable me to easily and efficiently create dispute letters for my clients. The Credit Repair Cloud software, the only option available at the time, which has since evolved, was specifically designed to help credit repair companies aid their clients in rectifying their credit. However, this software can also be used by individuals wishing to do their own credit repair, as evidenced by their free 30-day trial which enables users to generate their first dispute letter for free. This particular software is an excellent option for those seeking an easily navigable step-by-step credit repair process, which also includes comprehensive credit repair information. Additionally, the Credit Repair Cloud provides a variety of dispute letters and tactics, as well as dispute reasons, that help tailor dispute responses to the account in question. However, it is important to note that access to only the first round of dispute letters is available with the free trial version and that manual creation of subsequent round letters or paid upgrades of the software will be required for completion of the credit repair process. There are approximately ten other credit repair software options available on the market, and it may be beneficial to investigate these options in order to determine which one is best suited for your specific needs. It is also possible that after familiarizing yourself with this process, you may wish to enter the credit repair business and aid others in their quest to fix their credit history.
Getting Your Credit Report for Free Credit Repair
To be able to fix your credit at no cost, you have to secure copies of the Equifax, Experian, and Transunion reports, all of which are required. Initially, it is advisable to keep things straight as you will want to dispute with all available credit reporting agencies and data furnishers to obtain desirable results. Knowing the defamatory accounts included in your disputes involves accessing your credit reports, which raises the question of which credit report to use.The candid answer is yes. Having used diverse types of credit reports, there is a vast disparity among them. Mostly, the Fair Isaac Corporation (FICO) report is the go-to for approving loans, though its high cost may be unaffordable even with effective credit repair services. Instead, obtaining the best Vantage score report is preferable because it is less costly and, at the same time, provides the same data as a FICO report.As such, which credit repair credit report is recommended? In my opinion, IdentityIQ provides the best credit reports compared to other credit monitoring sites. Even though the Data feed providing this information is similar to other Vantage Scoring Reports, IdentityIQ provides more data, which can reveal more errors on your credit report, resulting in higher success rates. It is worth noting, however, that it is not mandatory to use IdentityIQ as long as you have a good reputation source to access all three credit reports. Ultimately, though, we found that our clients had better results with IdentityIQ reports than with other sites.
Can Credit Repair Improve My Credit Score?
To put it simply, yes. However, it’s essential to note that credit repair is only one of the many ways to enhance your credit rating. While it's beneficial to eliminate negative payment history or accounts, that alone may not yield a significant increase in your score. It's crucial to maintain a positive payment history and well-established credit while working towards increasing your scores. Additionally, people often expect credit repair to remove accurate information from their reports. Unfortunately, this isn't usually possible. Regardless, credit repair can indeed help in certain ways:
- Removing negative payment history or accounts can boost your credit score.
- It's important to have positive revolving and installment accounts on your report for maximum effect.
- Maintaining good payment history on your active accounts is crucial for maintaining an excellent score.
- If you lack credit, starting out with a secured credit card can help to build credit quickly.
To conclude, credit repair is a highly effective tool for improving credit scores, but it is best combined with a good credit history, financial diligence, and responsible credit usage to experience the most significant impact.
Wrap it Up: Take Action to Repair Your Credit Today
Having worked in the credit industry for 15 years, I've encountered many people who don't know where to begin with credit repair. Taking the initiative is key. So, whether you start by teaching yourself about credit repair and drafting your first dispute letter or by exploring professional credit repair services, take that first step and act. It's crucial not to become idle and do nothing. By repairing your credit now, you can save yourself thousands of dollars in interest payments over the next few years. If you're looking for professional credit repair services, consider reaching out to ASAP Credit Repair for a free consultation and evaluation. We understand the importance of quickly repairing and restoring our clients' credit.