If we haven't had the pleasure of meeting, my name is Joe Mahlow, and I've been working in the field of Personal Finance and Credit for some time now. As someone who likes to provide valuable content to my audience, I thought it would be beneficial to touch on a topic that I get asked about by clients and followers alike - Credit Repair for Free. While it is possible to repair your credit without spending any money, it's important to note that it will require a fair amount of effort on your part. But if you're up for the challenge, the time and money you save in the long run will make it all worth it. So, let's dive in.
Table of Contents
Obtaining Free Credit RepairCredit Repair Guide: How to Repair Your Credit for FreeUsing Free Software for Credit RepairFree Credit Repair: Accessing the Most Effective Credit ReportThe Impact of Credit Repair on Credit ScoresWrapping Up: Take the First Step Towards Credit Repair
Obtaining Free Credit Repair
When someone claims to provide free credit repair services, the reality is generally not what it appears to be. There's always a motive behind any person or organization offering such services for free, as no company or individual will be willing to repair your credit without getting anything in return. When I began working in the credit repair industry 15 years ago, I had no clients, and the only approach to establish myself was to work with some clients for free while requesting their testimonials or reviews in exchange. Today, my company ASAP Credit Repair offers one free round of credit repair services, which involves enrolling and paying the initial service fee, but the service doesn't go beyond that.However, you can improve your credit rating by yourself, free of cost, but you'll need to devote some time to this. I advise everyone to contest their credit report for free but be prepared to allocate one to two hours per month for three to five months to complete the credit repair process. Alternatively, if you cannot dedicate the time to credit repair on your own, you must locate a credit repair service or company near you to help you. On average, credit repair services charge customers $400-600 to handle all of their credit repair requirements.
Credit Repair Guide: How to Repair Your Credit for Free
Repairing your credit on your own is simple though time-consuming. The commonly used online dispute process that people go through is ineffective and generic and will not yield desirable results. Therefore, refrain from disputing your credit reports online since you give up your legal right to dispute your credit report more than once every year. In my opinion, the credit repair process requires 70% research and pulling of credit reports and 30% drafting of credit disputes. Here are the steps you can follow to repair your credit for free:
1. Access your credit reports online: Use a reliable credit report provider like Identity IQ to find all possible errors on your credit report.
2. Understand what disputing means: Get familiar with the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) to comprehend your legal rights.
3. Draft up your own dispute letter: Do not follow the advice of unlicensed credit repair companies online, but rather write your own dispute letter. On the letter include your name, address, date of birth and last four of your social security. Identify the account name and account number you are disputing and request that the account be validated by providing proof of authorization, such as a credit application, the ledger balance history, and all monthly billing statements since the account's opening. Conclude the letter and sign it.
4. Wait 30 days: If the credit reporting agencies do not provide the proof you requested, send a secondary dispute letter explaining that you did not receive the documents, and request the account be deleted if it's a charge off or the collection or late payment history removed if it's an account with late payments.
5. Rinse and repeat: Keep following up until you get the results you desire. If you encounter difficulties, consider reaching out to reputable credit repair organizations such as ASAP Credit Repair.
Remember to keep your disputes simple and straightforward. Templates can inspire you but never use them.
Using Free Software for Credit Repair
When I entered the credit repair industry, my first goal was to find a tool that could help me create effective dispute letters and improve my clients' experience. After scouring the market for options, I discovered the Credit Repair Cloud software, which was designed to assist credit repair companies in helping their clients improve their credit. However, this software can also be used by individuals and is available as a free 30-day trial. With this trial, you can generate your first dispute letter for free and gain access to step-by-step guidance on the credit repair process. Additionally, Credit Repair Cloud offers an array of dispute letters and tactics, as well as varying dispute reasons, which can be tailored to the specific needs of your accounts. It's important to note that the free trial only provides access to the 1st round of dispute letters, and you’ll have to manually create your future round letters or pay for an upgrade to complete the entire credit repair process.If you want to try out other credit repair software, there are about ten other options on the market that you can explore to find the best fit for you. Once you learn the process, you can even turn it into a credit repair business and help others fix their credit.
Free Credit Repair: Accessing the Most Effective Credit Report
In order to repair your credit for free, obtaining a copy of all three credit reports (Equifax, Experian, and Transunion) is crucial. Although there are multiple credit reporting agencies and data furnishers available, keeping it simple is recommended when starting out.Identifying the derogatory accounts listed in your disputes and choosing the right credit report to use are important aspects to consider. It's essential to access the best Vantage score report, which is less expensive and provides the same data as a Fair Isaac Corporation (FICO) report.IdentityIQ is the most efficient credit repair credit report as it provides more data than any other credit monitoring site. While it is not mandatory to use IdentityIQ, accessing all three credit reports from a reputable credit monitoring site is necessary. Results have shown IdentityIQ reports give the best results for clients.
The Impact of Credit Repair on Credit Scores
To answer the question, credit repair can definitely improve your credit scores, but it is not a magic solution. A crucial aspect of maintaining and boosting your credit scores is managing your existing credit and payment history. It is important to understand that credit repair alone cannot guarantee a fix to all credit issues unless the inaccuracies or errors are removed from credit reports.
Here are the ways credit repair can help improve your credit score:
1. Erasing negative payment history or accounts generally improves your credit score.
2. Being proactive in building positive credit by establishing revolving and installment accounts in good standing is just as crucial.
3. Ensuring that payments on active accounts are paid on time is vital to sustaining excellent credit.
If you have limited credit history, building credit can be accomplished through the use of secured credit cards, which are a quick way to grow your credit score.To conclude, credit repair is an excellent tool to improve your credit score, but it's important to go beyond credit repair and also focus on creating positive long-term credit habits. This includes proper management of all credit accounts, keeping balances low, and making payments on time. Using these tools in conjunction with credit repair will provide the best results for increasing credit scores over time.
Wrapping Up: Take the First Step Towards Credit Repair
Throughout my 15 years in the industry, I have come across numerous cases where people refrain from starting the credit repair process due to a lack of knowledge and initiative. However, I urge you to take that first step, whether it's by educating yourself on credit repair and crafting your first dispute letter or by considering hiring a credit repair company to take care of the entire process for you. Indifference and inaction will only worsen your financial situation. By taking action today to repair your credit, you can save yourself from paying thousands of dollars in interest in the coming years. If you're unsure about where to start looking for a credit repair company, you can always reach out to us at ASAP Credit Repair for a free consultation and evaluation. Restoring and repairing our clients' credit quickly is our top priority.