It's a pleasure to meet you all. My name is Joe Mahlow, and I have been an active member of the Personal Finance and Credit industry. Creating informative articles for my followers is a genuine passion of mine. Today, I want to delve into a topic that frequently pops up amongst my clients - Credit Repair for free. With this in mind, I'd like to begin by highlighting some of the questions and misconceptions that arise in this area. Yes, it is possible to restore your credit for free, but it will require some dedicated effort. If you're willing to put in the work, however, you stand to save yourself both time and money. Let's explore this topic in more detail.
Table of Contents
Getting Free Credit Repair
How can I repair my credit for free on my own?
Using Free Credit Repair Software: What You Need to Know
Obtaining Free Credit Repair through a Comprehensive Credit Report
Can Credit Repair Boost Your Credit Score?
Wrapping Up: Take Action for Credit Repair
Getting Free Credit Repair
Usually, free credit repair services come with a catch that is not revealed in their advertisements. No individual or organization would offer credit repair services for free unless they expected something in return. Starting in the credit repair business, I had no clients and needed to get my name out there. The only way to do this was by providing some clients with free services, but in exchange, I needed them to give me testimonials or reviews. Even now, my company, ASAP Credit Repair, offers free credit repair, but we provide one round of service that is entirely free. However, customers still have to subscribe and pay the service fee to get started, as free always comes at a cost.
If you want to repair your credit for free, you can. However, doing so requires a lot of time and investment. I suggest disputing your credit reports for free, but you must allocate a minimum of 1-2 hours per month over the next 3-5 months to complete all the steps for credit repair. Alternatively, you can find a credit repair company or service near you if you don't have enough time to repair it independently. The average cost for credit repair services is $400-$600 per customer.
How can I repair my credit for free on my own?
Repairing your credit without the help of professionals can be time-consuming but not as difficult as it seems. However, one important piece of advice is that you should always avoid disputing your credit reports online since it limits your legal right to dispute your credit report more than once a year. Additionally, the outdated and generic dispute process online can hinder you from getting the desired results.
The credit repair process is generally 70/30 in which 70% of your time goes into researching and pulling out your credit reports while the remaining 30% goes into drafting credit disputes. To simplify the process, here are the steps you need to follow:
Access your credit reports online
We recommend using IdentityIQ, as it provides the most available data to identify all possible errors on your credit report.
Understand dispute guidelines
Learn about the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) laws that guide the dispute process.
Draft up your own dispute letter
Avoid suggestions from online gurus and rather search for the Credit Reporting Agencies Addresses such as Equifax, Experian, and Transunion. Then, provide your personal details, account name, and account number, and draft a paragraph that asks for account validation by providing certain pieces of evidence. Conclude the letter and sign it.
Wait 30 days
In the event of no response, send a secondary dispute letter via certified mail requesting account deletion or removal of late payment history.
Rinse and repeat
Repeat the above steps as much as possible until you achieve your desired result. If you encounter difficulties, ASAP Credit Repair or other credible credit repair companies can offer valuable assistance.
Remember to keep your dispute letter simple. You can refer to dispute template letters online for reference, but never outright use them.
Using Free Credit Repair Software: What You Need to Know
When I first entered the credit repair industry, like many professionals, I sought a tool to simplify the creation of effective dispute letters for my clients. At that time, the only available option was credit repair cloud software, primarily designed for credit repair companies but now accessible to individuals. With a complimentary 30-day trial, you can kickstart your credit repair journey by generating your initial dispute letter. This software provides valuable information on credit repair and offers a range of dispute letters and tactics to suit your specific needs. It's important to note that the free trial grants access to only the first round of dispute letters, and if you wish to complete the credit repair process, you'll need to manually create subsequent round letters or upgrade your software package. While credit repair cloud software is a fantastic choice, it's worth exploring approximately ten other available software options. If you find the process enjoyable while using the software to fix your credit, you might consider turning it into a credit repair business to assist others!
Obtaining Free Credit Repair through a Comprehensive Credit Report
Acquiring copies of all three credit reports is the essential and mandatory first step towards repairing your credit for free. Examine all the available credit reports from agencies and data furnishers before disputing. While determining the derogatory accounts to appear in your disputes is essential, choosing the right credit report among the three—Equifax, Experian, and Transunion is imperative.
Undoubtedly, Fair Isaac Corporation (FICO) reports are the most preferred ones; however, accessing them is an expensive affair. Hence, it is better to start with Vantage score reports and, more specifically, the best- IdentityIQ. It provides the same data as FICO reports is less costly, and provides more detailed data. By scrutinizing this data, you can spot errors in your report, leading to a better overall outcome.
Although IdentityIQ is the recommended way to go and has shown higher results for clients, it is not mandatory. The important thing is to access all three credit reports from a reliable and trustworthy credit monitoring site.
Can Credit Repair Boost Your Credit Score?
To put it briefly, credit repair can certainly help improve your credit score, but it should not be relied upon as the sole solution. It is crucial to maintain a positive payment history and a robust credit profile to achieve higher credit scores. It is a common misconception that credit repair alone can resolve your credit issues permanently. Still, the reality is that only inaccurate or erroneous accounts can be removed from your report, leaving accurate ones intact.
So what can credit repair accomplish to benefit your credit score?
1.Eliminating negative payment histories or adverse accounts is likely to increase your credit score.
2. However, as previously mentioned, having favorable revolving and installment accounts reported can contribute to more substantial credit score gains.
3.One of the most critical steps you can take to maintain excellent credit is to ensure that your active accounts have a positive payment history.
4.If you are struggling to build credit due to limited credit options, starting with a secured credit card is advisable to establish a positive credit history quickly.
In conclusion, while credit repair can certainly play a beneficial role in enhancing your credit score, it is critical to maintain a healthy credit profile by keeping your balances low and paying your bills on time. By following these steps, you can ensure that credit repair yields the most impactful results for your credit score.
Wrapping Up: Take Action for Credit Repair
After 15 years in the industry, I have witnessed numerous situations where people lack the motivation to initiate the process of credit repair simply because they are unaware of how to go about it. I recommend taking that first step towards credit repair by educating yourself on the subject and crafting your initial dispute letter. Alternatively, consider hiring a credit repair company to handle the entire process for you. Whichever route you take, avoid becoming complacent and taking no action. You could save thousands of dollars in interest payments over the next few years by taking the initiative to repair your credit now. If you are struggling to locate a reputable Credit Repair company, check out ASAP Credit Repair, as we provide a free consultation and evaluation. We understand the importance of assisting clients in repairing and restoring their credit quickly.