If we haven't met before, my name is Joe Mahlow, and I've been working in the field of Personal Finance and Credit for quite some time. Writing blog posts about topics that matter to you and my other followers is something I genuinely enjoy. With that being said, I wanted to dive into a subject that is frequently discussed with both my current and former clients - and that is credit repair for free. I want to make it clear that it's entirely plausible to repair your credit for free, but it's not a walk in the park. However, if you're prepared to roll up your sleeves and put in some hard work, you can save yourself a significant amount of time and money. So, let's explore this topic together.
Table of Contents
Obtaining Credit Repair Without Paying
DIY Credit Repair: Tips For Free Credit Fixing
Using a Free Credit Repair Software: An Option for Individuals
Receiving a Free Credit Report for Credit Repair
Can Credit Repair Boost Your Credit Scores?
Wrap It Up: Tips for Starting the Credit Repair Process
Obtaining Credit Repair without paying
It is unlikely that anyone or any company offers credit repair for free without any catch. No one offers free credit repair without anything in return. As an example, when I started working in the credit repair industry 15 years ago, the only way to gain credibility was to offer some free services to clients in exchange for testimonials or reviews. Nowadays, my firm, ASAP Credit Repair, offers free credit repair services, but only one round of services is included, which is completely free. Nonetheless, the process requires paying the enrollment and service costs. Nothing comes free without a cost.
However, you can carry out your own credit repair for free. It just requires you to allocate enough time to do so. The first step is to dispute your credit reports for free, but you must set aside at least 1-2 hours per month for 3-5 months to complete the whole repair process. If you don't have enough time to perform your own credit repair, you can find a Credit Repair service or company to help you. An average customer spends between $400-$600 to have someone do their credit repair work.
DIY Credit Repair: Tips For Free Credit Fixing
Fixing your credit on your own can be time-consuming, but it’s not impossible. It is important to never dispute your credit reports online, as this would limit your rights to dispute your credit report for an entire year. Furthermore, the online dispute process is generic and outdated, providing ineffective results. The process of credit repair is 70/30, meaning seventy percent of your time is spent on research and pulling your credit reports, and thirty percent of your time is utilized to draft your credit disputes.
Here are the steps you can follow to fix your credit on your own for free:
1. Access your credit report online by using a credit report provider, such as IdentityIQ, which provides the most available data to locate all possible errors on your credit report.
2.Understand the dispute process and become familiar with two laws that protect you as the consumer, the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). Understanding your legal rights is essential.
3.Draft your own dispute letter by ignoring any advice online and providing your name, address, date of birth, and the last four digits of your social security number. Identify the account name, account number, and request that they provide proof of the account's authorization by providing a credit application, ledger balance history, and all monthly billing statements since the opening of the account. Conclude the letter and sign it.
4.Wait for 30 days, and if they don't send the proof of each disputed account, send a secondary dispute letter via certified mail, explaining that you did not receive the requested documents and want the account deleted/late payment history removed.
5. Rinse and repeat the last step as many times as possible until you get the resolution you're looking for. If you get stuck, reach out to ASAP Credit Repair or another reputable credit repair firm.
Remember to keep your dispute letter simple and to the point. You can use search templates as a guide, but refrain from copying any template letters online.
Using a Free Credit Repair Software: An Option for Individuals
When I began working in the credit repair industry, my priority was finding a tool that could aid in creating effective dispute letters and streamlining the overall customer experience. Credit Repair Cloud software was the only viable option at the time, and it has evolved significantly since. This software was initially designed to help credit repair companies assist their clients in fixing their credit. However, it can also be utilized by individuals in need of credit repair services. Credit Repair Cloud offers a free 30-day trial that allows you to generate your first dispute letter. With this software, you can go through the credit repair process step-by-step and access vital information on credit repair in general. You will also have a broad selection of dispute letters and tactics at your disposal, along with various dispute reasons that you can use to tailor your dispute responses to the account in question. It is essential to note that the free trial only grants access to the first round of dispute letters, and for the rest of the credit repair process, you will have to create your letters or pay for an upgraded version of the software. While there are about ten other credit repair software options available, Credit Repair Cloud is an excellent secondary option for those seeking to fix their credit for free. Maybe after learning how to navigate this process, you can start a credit repair business and help others fix their credit.
Receiving a Free Credit Report for Credit Repair
When attempting to repair your credit score without paying, you must locate copies of your credit reports from all three major credit agencies: Equifax, Experian, and Transunion. While working towards credit repair, it is advisable to keep your dispute process straightforward. Accessing your credit reports is crucial to identifying derogatory accounts that you will challenge. Additionally, it is essential to determine the credit report to use. Which one has a preference?
The answer is based on personal preference, but Fair Isaac Corporation (FICO) credit reports are commonly used by lenders. However, these reports are quite expensive. Instead, obtaining the Vantage score report is recommended because it is affordable and provides the same information as a FICO report.
The most useful credit repair report is provided by IdentityIQ, which has access to the same data feed as other Vantage Scoring Reports but provides more information. This extra information aids in identifying errors on your credit reports, resulting in more favorable outcomes. Although it is not required to use IdentityIQ, its credit reports have shown better results for clients than traditional sites.
Can Credit Repair Boost Your Credit Scores?
In short, credit repair can be an effective tool for improving your credit scores, but it's not a magic solution to all credit issues. To achieve better credit scores, you need to manage and maintain your credit diligently, in addition to using credit repair services. Remember, credit repair can only help with certain aspects of your credit report. Let's dive deeper into credit repair and its impact on your scores:
-Removing negative history or accounts from your credit report can generally help raise your score.
- However, it's equally important to have positive revolving and installment accounts reported to your credit report.
-Maintaining a positive payment history on your active accounts is crucial to maintaining good credit standing.
So, to reap the most benefits from credit repair, you should ensure that you have established credit, make timely payments, and keep your credit card balances low or zero at all times. We highly recommend starting with a secure credit card if you're looking to build your credit score from scratch. Thus, credit repair can be an effective tool, but it should be accompanied by smart financial practices.
Wrap It Up: Tips for Starting the Credit Repair Process
Having worked in the industry for over 15 years, I have come across several situations where individuals fail to initiate the credit repair process due to a lack of knowledge about how to go about it. Therefore, it is highly recommended that you take the first step towards repairing your credit. You can start by educating yourself about credit repair and drafting your first dispute letter, or you can consider hiring a reliable credit repair company that will do all the work for you. Whatever step you decide to take, do not be complacent and procrastinate. Taking the initiative to repair your credit today will save you from paying thousands of dollars in interest in the coming years. If you are unsure about where to begin your search for a reliable credit repair company, feel free to explore ASAP Credit Repair services. We offer a free consultation and evaluation to help you get started on restoring your credit quickly.