If we haven't met before, I'm Joe Mahlow, and I've spent a considerable amount of time in the space of Personal Finance and Credit. My goal is to provide valuable insight through various posts on topics pertinent to those following my content. Speaking of which, today we'll touch on the popular topic of Credit Repair for Free. In this post, we'll be addressing common questions and concerns raised by my current and previous clients. While it's possible to repair your credit without paying a dime, be aware that it'll require a substantial amount of time and effort on your part. Nevertheless, if you're willing to put in the work, you can save yourself both money and precious time. Let's dive in!
Table of Contents
Getting Credit Repair Without Paying a DimeHow to Fix Your Credit for Free on Your OwnUsing Free Credit Repair Software: An Option for IndividualsObtaining Credit Reports for Credit RepairCan Credit Repair Boost Your Credit Score?Wrapping Up: Taking Initiative in Credit Repair Matters
Getting Credit Repair Without Paying a Dime
While a few companies and individuals boast about offering credit repair for no charge, their claims are often misleading. It's unlikely that any business or person would fix your credit without an ulterior motive. In my case, when I was first starting out in credit repair 15 years ago, I gave free services to clients to establish my reputation and obtain feedback and testimonials. While the service costs nothing, the client still needs to make time to provide feedback. My firm, ASAP Credit Repair, still provides one cycle of free credit repair services today, but enrollment and payment of service fees are necessary to initiate the process. The bottom line is that freedom always comes with a cost.Nevertheless, you can fix your credit for free by going about it on your own, although it will require an investment of time on your part. I suggest disputing your credit reports for free but be prepared to allot 1-2 hour chunks per month for the next three to five months to see the process through. If you don't have the time or resources to take on credit repair on your own, it's advisable to search for a local credit repair service or company average. Credit repair services can cost anywhere between $400 to $600.
How to Fix Your Credit for Free on Your Own
Fixing your credit on your own can be less challenging than you might think but could take up some of your time. One crucial tip is to avoid disputing your credit reports online, as it would waive your legal right to dispute it more than once annually. Also, the dispute process is obsolete and ineffective, therefore unaiding in getting the desired results. The credit repair process requires about 70% of your time spent researching and scrutinizing the credit report and the remaining 30% of your time composing your credit disputes. The following are the steps you need to take to repair your credit without spending money on a professional service.
1. Acquire copies of your credit reports onlineIt's advisable to use a reputable credit report provider such as Identity IQ that provides comprehensive data to detect the possible errors that need fixing.
2. Understand the process of disputingFamiliarize yourself with the two laws, the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA), that safeguard your interests as a consumer and govern disputing guidelines.
3. Develop a dispute letter by yourselfShun from relying on online gurus for creating a dispute letter. Drafting a dispute letter by yourself is uncomplicated using paper or Google Docs, and you need to search for the creditor's address at the bottom of the credit report, besides the Credit Reporting Agencies Addresses for Equifax, Experian and Transunion, which you put aside. In the letter, include your personal details, account name, and number, and request that the account be validated by providing proof of authorization, such as a Credit Application, the ledger balance history, and monthly billing statements since the account opening while keeping the body paragraph simple.
4. Wait for 30 daysIf they don't respond via mail, send another dispute letter via certified mail stating that requested documents were not received and demand that accounts get deleted if they're charged off or in collections or have the late payment history removed for accounts with late payments.
5. Repeat the processReiterate step 4 several times until the desired outcome is achieved. In case of complications, reaching out to reputable credit repair agencies such as ASAP Credit Repair might be beneficial. If you need guidance, you can quickly look for dispute letter template samples online but never use any online letter templates.
Using Free Credit Repair Software: An Option for Individuals
As a beginner in the credit repair industry, my first priority was to find an efficient tool for creating dispute letters to streamline my customers' experience. While the credit repair cloud software was the only available option at that time, it has since evolved. Originally designed for credit repair companies to assist their clients in fixing their credit, this software can now be used by individuals as well. By offering a 30-day free trial, the credit repair cloud allows individuals to generate their very first dispute letter for free. This secondary option enables people to go through the credit repair process step-by-step and provides an array of helpful information on credit repair in general. Additionally, Credit Repair Cloud offers various dispute letters and tactics as well as different dispute reasons, helping individuals tailor their dispute responses to the specific account. However, the free trial only provides access to their 1st round dispute letters, which requires individuals to manually create their own future round letters or upgrade the software to complete the entire credit repair process. While there are approximately 10 other credit repair software options available, Credit Repair Cloud's user-friendly features and informative materials make it an excellent choice for starting out. Who knows, you may even choose to create a credit repair business to assist others in fixing their credit in the future!
Obtaining Credit Reports for Credit Repair
To start repairing your credit for free, you must acquire copies of the credit reports from all three major credit bureaus (Equifax, Experian, and Transunion). As you begin learning more about credit repair, you'll want to file disputes with all available credit bureaus as well as the data furnishing agencies; however, it is suggested to keep it simple when just starting.It's critical to view your credit reports to determine the reporting of derogatory accounts that you will include in your disputes. Additionally, the most important question is: which credit report should you use? Is there a preference?The answer to this is yes. While I have used all credit reports available; unfortunately, not all are created equal. Typically, most lenders who approve loans pull the Fair Isaac Corporation (FICO) report. However, due to the high cost of accessing this report, it is suggested that obtaining this report should be done at the end of the credit repair process. Instead, access to the best Vantage score report should be a priority because it is much less expensive and provides the same exact data as a FICO report.
So, which credit report is the most recommended for effective credit repair?
In my opinion, IdentityIQ offers the best credit reports compared to other credit monitoring sites. Although the data feed that provides the information is the same as other Vantage scoring reports, IdentityIQ offers more data that can help identify more errors on your credit report and deliver better results.Is it compulsory to use IdentityIQ? While it's not mandatory, it is suggested to access all three credit reports from a reputable credit monitoring site. However, based on the results of our clients, IdentityIQ reports have shown to be the most effective.
Can Credit Repair Boost Your Credit Score?
In short, the answer is yes. However, it is crucial to note that credit repair is just one of the tools to enhance your credit score. It is equally important to maintain a good credit standing and payment history, as it helps you accelerate the advancement of your credit scores.
There is a common misconception that credit repair can very quickly solve all your credit problems. Unfortunately, that is not entirely true, as the chances of having an accurate account removed from your credit report are slim. Unless there are errors in the reporting, you cannot expect immediate and permanent results from credit repair.
Here's what credit repair can help to boost your credit score:
1. Removing negative payment history or negative accounts will almost always give a significant boost to your credit score.
2. However, merely removing negative accounts is not enough. You also need to have positive revolving and installment accounts reporting.
3. Good payment history on your existing accounts is crucial for maintaining a good credit score.
4. Starting with a secured credit card can be an excellent way to build credit if you are limited in credit.
Credit repair may be a powerful tool to improve your credit score, but maintaining an excellent credit standing, making timely payments, and keeping your credit card balance close to zero dollars can boost the effectiveness of credit repair on your credit scores.
Wrapping Up: Taking Initiative in Credit Repair Matters
Throughout my 15 years of experience in the credit industry, I have witnessed many people struggle to initiate credit repair processes due to a lack of knowledge or understanding. If you are among these individuals, my recommendation is to take a first step by either educating yourself on credit repair and drafting your first dispute letter, or by seeking the assistance of a credit repair company to handle the work for you. Whatever approach you choose, make sure you do not become complacent and fail to take action. By being proactive today, you can save thousands of dollars in paid interest in the coming years. If you are unsure where to start in looking for a reputable credit repair company, consider ASAP Credit Repair for a free consultation and evaluation. Our team is dedicated to helping clients restore and repair their credit as quickly as possible.