I am Joe Mahlow, a Personal Finance and Credit specialist, and I take great pleasure in writing various posts on subjects that are significant to my readers. Today, we will cover Credit Repair for free, a topic that I will begin by discussing some of the frequently asked questions I receive from my clients. I want to emphasize that it is possible to fix your credit score without spending money, but it typically requires a lot of effort. Nevertheless, if you are committed to putting in the work, you can absolutely save yourself a significant amount of time and money. Let's dive in!
Table of Contents
Getting Free Credit Repair Assistance: Is It Possible?
How to Fix Your Credit for Free by Yourself
Exploring Free Credit Repair Software
Free Credit Repair - Getting Your Credit Report
Can Credit Repair Boost Your Credit Score?
Conclusion: Credit Repair is Within Reach
Getting Free Credit Repair Assistance: Is It Possible?
Free credit repair is an enticing offer, but it's important to understand that there's often more to the story than what meets the eye. It's highly unlikely for anyone - be it an individual or a company - to provide credit repair services for free without expecting anything in return. There may be some situations where a credit repair service may be offered for free, like in the case of a startup company looking to gain recognition. In such cases, the company may perform the service for free only if the client provides a review or a testimonial.
At ASAP Credit Repair, we offer one round of credit repair services for free as an introductory offer. However, there's a catch; clients need to enroll and pay the service fee to kick-start the process. This means that our free credit repair service still comes with a cost.
Apart from such attractive offers, it's important to note that you can repair your credit on your own for free. However, this requires a significant time investment. We recommend allocating at least 1-2 hours per month for three to five months to dispute credit reports and complete the necessary steps for credit repair. If you don't have the time or resources to do it yourself, we recommend seeking out a reputable credit repair service or company, which may cost an average customer around $400-600.
To summarize, free credit repair services are available, but they may come with some terms and conditions. If you're unable to invest the required time in credit repair, consider seeking out professional assistance.
How to Fix Your Credit for Free by Yourself
Fixing your credit is not a challenging task, but it can be time-consuming. It's more straightforward than people imagine. Nevertheless, remember that by disputing your credit reports online, you forfeit your legal right to dispute your credit report more than once per year, apart from the fact that the dispute process is generic and obsolete and will impede you from obtaining effective outcomes. Therefore, it is essential to never dispute your credit reports online.
Repairing credit by yourself is a 70/30 process. This means you will spend approximately seventy percent of your time researching and securing your credit report, whereas the remaining thirty percent will be dedicated to drafting your credit disputes. To keep it simple, below are the steps you need to follow to fix your credit by yourself for free, including the purpose of each step:
Access your credit reports online:
It is recommended to use a credit report provider that provides the most thorough data, enabling you to identify any errors on your credit report. A recommended option is IdentityIQ.
Understand the meaning of disputing:
As a consumer, two laws protect you and guide you in disputing your credit report: the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). Comprehending what these laws entail is vital, as they provide you with legal rights.
Draft up your dispute letter:
Avoid listening to so-called credit gurus online and creating dispute letters via Google Docs or paper and pencil. The credit reporting agencies addresses (Equifax, Experian, and Transunion) should be googled so you can get the creditor's address, which you will later use. Your letter should provide your name, address, date of birth, and the last four digits of your social security number. Identify the account name and number you wish to dispute and conclude the letter by signing it.
Wait for thirty days:
If proof of the disputed accounts is not provided within one month, send a secondary dispute letter via certified mail. If it is a charge-off or collection, request the account be deleted or remove the late payment history if it contains late payments.
Repeat the process:
You should repeat the previous step for as long as possible until you achieve the desired resolution. If you encounter any challenges, seek advice from reputable credit repair firms, such as ASAP Credit Repair.
Remember to keep your disputes simple and to the point. You can research dispute or template letters' structure online, but avoid using them at all costs.
Exploring Free Credit Repair Software
As a beginner in the credit repair industry, I searched for a convenient tool to help create effective dispute letters for my clients and streamline the credit repair process. The ultimate solution I found was the Credit Repair Cloud software, designed for credit repair companies to assist their customers in correcting their credit. However, it is also a viable, free option for individuals. With the software's free 30-day trial, you can utilize it to generate your initial dispute letter and work through the credit repair process step-by-step. Credit Repair Cloud provides various dispute letters, tactics, and reasons to cater to your dispute responses and the particular account. Apart from its utility, the software offers general detailed information on credit repair. It's worth noting that the free trial only covers the first round of dispute letters; however, you can either manually create future round letters or upgrade your subscription to complete your credit repair process. You may also explore other credit repair software options available, of which there are around 10, before determining the best fit for you. If you become adept at this process, consider starting a credit repair business to help others fix their credit.
Free Credit Repair - Getting Your Credit Report
To start fixing your credit for free, you must obtain copies of your credit reports from all three credit reporting agencies (Equifax, Experian, and TransUnion.) Once you understand more about credit repair, you can challenge the credit reporting agencies and data providers, but keeping it simple when starting is recommended. It is not just important to get your credit reports so you can identify derogatory accounts, but it is also essential to know which credit report to use.
Is there a preferred report? The answer is yes. Although any type of credit report can be used, they are not all the same. Generally, lenders that approve loans will pull the Fair Isaac Corporation (FICO) report, but getting this report can be costly. It is recommended that you access the best Vantage score report instead, which is less expensive and contains the same data as a FICO report.
Which credit reporting agency should be used for credit repair? Our experience shows IdentityIQ provides the most effective credit reports compared to other credit monitoring sites. Even though the data supplier who provides the information to IdentityIQ is the same as for other Vantage Scoring Reports, IdentityIQ offers more data. Accessing more data can help you identify more errors on your credit report, resulting in better outcomes. It is not mandatory to use IdentityIQ, but our clients have had better results with IdentityIQ reports than with any other traditional site.
Can Credit Repair Boost Your Credit Score?
Simply put, credit repair can help improve your credit scores, but it's crucial to remember that it is not a one-stop solution. In addition to repairing your credit, managing and maintaining current credit accounts and payment histories is paramount to developing and enhancing your credit scores. While many believe that credit repair can resolve all credit issues, removing an inaccurate account from your credit report is highly unlikely unless a particular account includes errors or misleading information.
What areas of credit repair can boost your credit score?
Removing negative payment history or accounts can undeniably improve your credit score. Still, it is equally important to have positive revolving and installment credit accounts reported to achieve a significant credit score increase. Maintaining a good payment history on your active accounts should be one of your top priorities to sustain a desirable credit score. If you're new to credit and need to establish credit, obtaining a secured credit card can help you build your credit score quickly.
In brief, credit repair is an effective tool to bolster your credit score, but maintaining established credit, paying your bills on schedule, and keeping your credit card balances near zero at all times can help ensure that credit repair has the best impact on your credit scores.
Conclusion: Credit Repair is Within Reach
After 15 years in the finance industry, I've seen countless people hesitate to repair their credit simply because they don't know where to begin. But the truth is, taking that first step is key. Whether you educate yourself and create a dispute letter or enlist the help of a credit repair company, don't let inaction keep you from your financial goals. Starting today could save you thousands in interest down the road. And if you're unsure where to turn for help, check out ASAP Credit Repair. Our team is committed to providing free consultation and evaluation to get your credit back on track.