Hello there! My name is Joe Mahlow, and I have had the pleasure of working in the Personal Finance and Credit space for some time now. One of my favorite things to do is to create helpful posts that tackle the important topics that matter to you and many others who follow me. Today, I want to discuss Credit Repair for Free and answer some of the common questions I receive from clients, both current and previous. While it is possible to repair your credit for free, it's important to note that it does require a lot of effort and dedication. Despite this, if you're willing to put in the work, you can save yourself both time and money. Are you ready? Let's dive in.
Table of Contents
How to Obtain Free Credit Repair ServicesHow to Fix Your Credit Score for Free on Your OwnUsing Free Credit Repair Software: A Viable Option?Obtaining Your Credit Report for Free Credit RepairCan Credit Repair Boost My Credit Score?Tips on Credit Repair
How to Obtain Free Credit Repair Services
It's rare to find someone or a company that offers credit repair services for free. Most likely, there would be underlying conditions or expectations. No credit repair entity is willing to render their services for free unless they are compensating in other ways. When I first started my credit repair business more than 15 years ago, I had no clients at all. I knew that in order to promote my services and provide evidence of my competence, I needed to provide free service for some clients. Despite that, it wasn't entirely free for my clients as I asked them to provide feedback or testimonial of my service. Even now, my company, ASAP Credit Repair, still offers free credit repair, but it's just one round of service. To avail of this, clients still have to enroll and pay a service fee. Therefore, free service will always incur costs.Nevertheless, credit repair can be done at no cost, but it will require time and effort on your end. I recommend resolving disputes on your credit report for free, but you must set aside at least 1-2 hours a month for the next 3-5 months to complete the credit repair process. If you cannot allocate the necessary time to repair your credit personally but you still urgently need assistance, you can find a credit repair service or a credit repair company within your area to help you. However, be mindful that most credit repair entities charge an average of $400-$600 to have all the credit repair work done for you.
How to Fix Your Credit Score for Free on Your Own
Although repairing your credit score on your own can be somewhat time-consuming, it is far less difficult than most people believe. It is essential to keep in mind that challenging your credit reports online is not advisable since it will forfeit your legal right to dispute your credit report multiple times per year. Additionally, the dispute process is both generic and obsolete, rendering it ineffective.The credit repair process is divided into 70/30, where 70% of your time is dedicated to researching and pulling your credit reports, while the remaining 30% is focused on drafting your credit disputes.
Here are the steps to fix your credit score on your own for free:
1. Get access to your credit reports online: It is highly recommended that you use a credit report provider such as Identity IQ, which provides the most comprehensive data possible to identify any potential mistakes on your credit report.
2. Understand the meaning of disputing: You must familiarize yourself with the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) to understand your legal rights as a consumer.
3. Draft your dispute letter: Ignore the online "experts" and create your dispute letter using Google Docs or a good old pen and paper. Get the creditor's address from the bottom of the credit report and write down your name, address, date of birth, and the last four digits of your social security number. Identify the account name and account number, and then write the body of the paragraph. Your request in the paragraph should be straightforward, asking them to validate the account by providing evidence that the account is authorized (referencing a credit application, ledger balance history, and monthly billing statements).
4. Wait for 30 days: If the credit reporting agencies do not provide the requested documents within 30 days, send a secondary dispute letter via certified mail requesting that the account be deleted if it is a charge-off or collection or the late payment history removed if it's an account with late payments.
5. Rinse and repeat: Keep repeating the previous step until you reach a satisfactory resolution. If you are unsure, contact ASAP Credit Repair or another reliable credit repair firm.
Remember always to keep your dispute letter simple and straightforward. You can search for dispute letter templates online to inspire your drafting process, but never use any online template letter verbatim.
Using Free Credit Repair Software: A Viable Option?
As a newcomer to the credit repair industry, I was initially on the lookout for a resource that would assist me in drafting effective dispute letters with ease, thereby streamlining the overall experience for my clients. The credit repair cloud software seemed to be the only option back then, and it has only evolved and improved over time. While this software was specifically designed to help credit repair companies resolve credit issues for their clients, it can also be utilized by individuals. In fact, prospective users can take advantage of the software's 30-day free trial period, during which they can generate their first dispute letter for no cost. This presents an outstanding opportunity for anyone interested in conducting their own credit repair process, as the software is not only a great guide but also offers valuable information on credit repair as a whole. With Credit Repair Cloud, you gain access to a vast array of dispute letters and tactics, as well as dispute reasons that can be tailored to cater to specific accounts. However, it should be noted that accessing only the 1st round of dispute letters is possible with the free trial version of the software. As such, individuals using the trial version would need to create subsequent dispute letters manually or upgrade to a paid version. While the software is a viable option for credit repair, it is advisable to explore other credit repair softwares in the market - roughly 10 other options - to find the one that best suits your needs. Perhaps, after successfully navigating the process on your own, you could consider starting a credit repair business to help others improve their credit scores.
Obtaining Your Credit Report for Free Credit Repair
In order to successfully repair your credit for free, you will need to obtain copies of all three credit reports: Equifax, Experian, and Transunion. As you familiarize yourself with credit repair, you may wish to dispute with all credit reporting agencies and data furnishers, but it is recommended to start with a simple approach. Accessing your credit reports is crucial to identifying negative accounts that require dispute. However, it is important to determine which credit report to use.Is there a preference? The answer is yes. Not all credit reports are created equal, and while most lenders will look for a Fair Isaac Corporation (FICO) report before approving a loan, the cost of accessing it is significantly higher. Instead, a Vantage score report is a more economical option that provides the same data points as a FICO report.To obtain the most effective credit repair credit report, IdentityIQ is recommended as it provides comprehensive information and assists in identifying errors. While not mandatory, clients' results were consistently better with IdentityIQ's reports compared to other traditional sites.
Can Credit Repair Boost My Credit Score?
At the end of the day, credit repair serves as a beneficial tool in elevating your credit scores. However, it should not be treated as a one-stop solution to fix all credit-related problems. Besides, maintaining excellent credit and adhering to a prompt payment history form a crucial part of advancing your credit scores. To elaborate further, here are the following ways credit repair can help improve your credit score:
1. Removing negative accounts and payment history is likely to increase your credit score.
2. Positive revolving and installment accounts are necessary to complement the impact of credit repair on credit scores.
3. Keeping in mind that maintaining good payment history on your active accounts constitutes a critical ingredient in building great credit.
4. For those with limited credit, starting with a secured credit card is an excellent way to embark on building credit quickly.
To conclude, while credit repair acts as an effective technique in raising your credit score, establishing credit, paying bills on time, and maintaining minimal credit card balances are essential in ensuring it has the greatest effect.
Tips on Credit Repair
After my 15 years of experience in the industry, I have noticed that many people hesitate to initiate credit repair due to a lack of knowledge. Instead of being complacent, I advise you to take at least one step forward. You can start the process by learning how credit repair works and creating the first dispute letter or by opting for a reliable credit repair company. Remember, repairing your credit today can help you save thousands of dollars in paid interest in the upcoming years. In case you are unsure about where to start, our credit repair company - ASAP Credit Repair, offers a free consultation and evaluation to help you get started on your credit repair journey. We understand how important it is to help clients repair and restore their credit in a quick and efficient manner.