If we haven't met before, my name is Joe Mahlow, and I have spent a significant amount of time in the Personal Finance and Credit industry. One of my passions is writing informative blog posts for my followers and people who are interested in the space. Today, I'd like to dive into the topic of Credit Repair for Free by addressing some of the most common questions I receive from my current and former clients. It is possible to fix your credit without spending any money, but it's important to note that it will require a lot of effort on your part. However, with some hard work and dedication, you can save both time and money. Let's get started.
Table of Contents
Free Credit Repair: What You Need to KnowHow to Fix Your Credit Score for FreeUsing Free Credit Repair Software: Is it Possible?Free Credit Repair: Obtain Your Credit ReportsCan Credit Repair Boost My Credit Score?Let's Conclude!
Free Credit Repair: What You Need to Know
If you come across an advertisement offering free credit repair, be cautious. There's probably more to it than what meets the eye. No company or individual is going to offer credit repair services for free unless they have something to gain from it.When starting in the credit repair industry fifteen years ago, our company offered some clients free services. However, we did so in exchange for reviews or testimonials. Currently, we still offer free credit repair services, but only for the initial round. However, you are still required to enroll and pay the service fee to get started.
Nothing comes for free. Though, you can always repair your credit on your own for free. However, it requires time, effort, and dedication. If you don't have the time to handle it on your own, consider hiring a credit repair service or company to help you. On average, these services cost anywhere from $400-600.
How to Fix Your Credit Score for Free
Fixing your credit score on your own may seem daunting, but it's definitely possible. It just requires a bit of time and effort. However, if done properly, it can lead to significant improvements to your credit score. Here are some tips to help:
1. Avoid disputing your credit reports onlineIt’s crucial not to dispute credit reports online because you may lose the legal right to do so again in the future. In addition, online disputes utilize a generic and outdated process that will likely not yield effective results.
2. Understand your rights under FCRA and FDCPABefore you start disputing, you should know the two laws that protect you as a consumer and outline the guidelines for disputing a credit report – Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA). Educate yourself on your legal rights as an individual.
3. Draft your own dispute letterYou don't need to have any specific expertise or knowledge to draft a dispute letter. You can easily create a dispute letter in Google Docs or write one out by hand. Simply provide your name, address, date of birth, last four digits of your social security number, the name of the account, the account number, and the paragraph body. The paragraph body should request that the creditor provides you with proof of the account being authorized, including a credit application, ledger balance history, and monthly billing statements.
4. Wait for a responseOnce the letter is delivered, wait for 30 days to receive a response. If you don't receive a response, send a follow-up letter via certified mail.
5. Repeat the processIf the creditor still does not provide proof of the account is authorized, repeat the process until you achieve the desired result. If you're having trouble, consider reaching out to reputable credit repair firms like ASAP Credit Repair.
Remember to keep your dispute letters simple and straightforward, and steer clear of using online templates. By following these steps, you can repair your credit score on your own and for free.
Using Free Credit Repair Software: Is it Possible?
When embarking on a career in credit repair, my first challenge was to find an efficient tool to generate effective dispute letters and streamline the overall customer experience. At that time, there was only one option available, the credit repair cloud software, which has since evolved considerably. Although initially designed for credit repair companies to assist their clients, it can also be used by individuals, and the software offers a free 30-day trial period for generating the first dispute letter. This makes it an excellent alternative for those who want to repair their credit for free, as it guides them step by step through the process while providing outstanding credit repair information. Besides, Credit Repair Cloud provides various dispute letters, tactics, and reasons to help tailor one's dispute correspondence to each specific account. However, keep in mind that the free trial allows access only to the 1st round of dispute letters. To complete the entire credit repair process, one needs to manually create future round letters or pay to upgrade the software.Additionally, you might wish to explore the other ten credit repair software options available in the market, selecting the one that best fits your needs. Perhaps you can master this process and create a Credit Repair Business to assist others in fixing their credit.
Free Credit Repair: Obtain Your Credit Reports
To successfully repair your credit for free, obtaining a copy of all three credit reports (Equifax, Experian, and Transunion) is important. Although it is advisable to dispute with all the available credit reporting agencies and data furnishers, it is recommended to keep it simple when starting out.Apart from identifying derogatory accounts in disputes, it is crucial to know which credit report to use. The Fair Isaac Corporation (FICO) report is the preferred report for most lenders, but it is not recommended to obtain this report until the end of your credit repair services due to its high cost. One of the best options is to gain access to the best Vantage score reports, which not only are much less expensive but also provide the same data as a FICO report.IdentityIQ offers the best credit reports in comparison to other credit monitoring sites. Although the data feed is the same as other Vantage Scoring Reports, IdentityIQ provides more data, which helps identify more overall errors on your credit report. Although it is not mandatory to use IdentityIQ, clients’ results were found to be higher using their reports in comparison to other traditional sites.
Can Credit Repair Boost My Credit Score?
In short, credit repair can definitely help you improve your credit score, but it's not the only solution to your credit issues. Balancing outstanding debt, maintaining a strong payment history, and building goodwill with your creditors are all essential components to improving your credit score. While credit repair can aid in the removal of erroneous and unjustified account details from your credit report, it doesn't guarantee that the account will be completely removed.
So how does credit repair positively impact your credit score?
1. Eliminating negative payment history or negative accounts from your credit report will almost always result in an increase in your credit score.
2. However, it's crucial that you have active, positive revolving and installment accounts that report positively to ensure that your credit score increase is substantial.
3. Maintaining good payment history on your active accounts is critical in maintaining a good credit score. If you need to start building credit, a secured credit card is a great way to get started and can help you establish credit quickly.
The bottom line is while credit repair is an excellent way to improve your credit score, having established credit, making timely payments, and keeping your credit card balances low are critical factors that can assist in maximizing credit repair's beneficial effect on your credit score.
Let's Conclude!
Throughout my 15 years in the industry, I have come across several situations where people lack the motivation to start the credit repair process due to a lack of knowledge on the subject. My recommendation is to take the initiative and commence the process, whether it is through creating a dispute letter, learning about credit repair, or hiring a credit repair company, don't sit around doing nothing. Taking action today will prevent you from paying hefty amounts of interest in the coming years. If you're unsure of where to begin, ASAP Credit Repair offers a free consultation and evaluation. Our priority is to assist clients in fast credit restoration and repair.