Credit repair costs nothing if you take care of the process yourself. There's nothing a credit repair company can do for you that you can't do on your own. Maybe you're dealing with sky-high interest rates, oppressive fees, or you just can't find the loan you need because of your bad credit. But with a legitimate credit repair company, such as those listed below, you can correct any inaccuracies reported to a credit bureau and get your credit rating in better shape.
Each credit repair service below will charge a monthly fee for its services. The services you receive will vary depending on the credit repair company and the level of service you choose. While all of these companies will file disputes with each credit bureau on your behalf, some also offer credit monitoring, credit counseling, identity theft detection services, debt validation letters, goodwill letter submissions, and dispute letter writing, among other services. While both levels provide you with a professional credit analyst, the basic level only takes into account dispute letters and follow-up.
The premium tier will give you credit score monitoring, goodwill letter presentations, unlimited challenge validation letters, and a final recommendation letter. This agency states that many clients see results within 15 to 30 days because the firm immediately begins sending validation letters of disputes and debts on their behalf. The credit firm offers a reasonably comprehensive service for one of the lowest monthly costs on this list. Clients are assigned a credit repair specialist who is supervised by a licensed attorney.
New customers have a five-day money-back guarantee to try the service. If they are not satisfied, they can receive a full refund of the initial fee. Each month, the credit repair service you hire will file a set number of dispute letters on your behalf. Credit reporting agencies have 30 days to investigate and resolve each dispute.
This means that your credit repair process can take several months to complete, depending on the number of disputes you need. And since there is no way to know how long your disputes will last, most agencies charge per month. In most cases, you can cancel your service and stop making payments with a 30-day notice. No company in the credit repair industry or any credit repair software currently available on the market can completely erase your credit profile.
If you have legitimate negative elements on your credit reports, such as late payment, default, or bankruptcy, you will have to wait until those items expire on your reports. This can take between two and 10 years, depending on the type of negative element. A credit repair company can only dispute the inaccurate elements of your credit report and challenge its creditors to verify the legitimate elements. It is illegal to claim that a legitimate item is inaccurate when submitting dispute letters.
In some cases, a repair service may file a letter of goodwill on your behalf requesting a debt collector to withdraw an accurately reported negative item. This is not a guaranteed process and it is entirely up to the debt-holder to accept or deny the application. The time you'll need to repair your credit will depend on the amount of work you need to complete. For example, you may find that it takes a month or less to remove some inaccuracies from your credit report.
Deeper disputes may take longer. When you file a dispute through a credit bureau, that agency generally has 30 days to investigate the claim and issue a judgment. Most credit repair services limit the number of disputes they will file on your behalf each month. This means that you may have to wait several months to file all the necessary disputes.
A credit repair service can legally request the removal of any inaccurate information from your credit report. This can be as simple as misspelling your name, address or Social Security number or something much more complex, such as accounts added to your name due to identity theft. You should doubt any credit repair service that claims they can remove legitimate items, erase your valid debts, or completely clean your credit history. This is usually a sign of a credit repair scam and rarely leaves you with a clean credit rating.
Instead, these fraudulent companies often clean your bank account and execute. If you have negative elements on your credit report, it may be helpful to hire an experienced credit repair company to handle this complex work for you. The credit repair industry is usually full of reputable companies that can help you repair your credit. However, some bad apples claim that they can erase your credit history or promise that you'll leave with an excellent credit score.
In the end, these services always turn out to be a credit repair scam. The cost of credit repair services is a small price to pay to hire a legitimate credit repair company that takes into account your best interests. These companies want their credit rating to improve through legal means. While the monthly payment may seem high, it's a minimal cost compared to the amount you'll pay in interest, fees, and charges if you live with bad credit.
Consider credit repair as an investment in your future. Your Best Alternatives to Lexington Law Credit Repair. Know that credit repair is not instantaneous, so whatever method you choose, it is better to start sooner rather than later in order to have a better chance of approving financial products in the future. Pyramid Credit Repair is a rare agency that files unlimited disputes on behalf of a client every month.
Before signing with a credit repair company, make sure you understand what services you will receive and how much these services cost. Accredited credit repair companies will clearly publish their prices and services, so that consumers can select the right package for their needs. While a credit repair service can't do anything you can't do yourself, it may be more convenient for you to ask for their help. When looking for the right credit repair company for you, it's a good idea to review the CFPB's complaint database and check how many, if any, complaints have been filed against that particular company.
But if you just want a better credit score and don't plan to apply for a loan or a new credit card in the near future, then paying for a high-level service is probably overkill. It's important to understand what a credit default is and how it can affect your credit score and report. CROA sets clear directives that legitimate credit repair agencies must follow, and it is important to ensure that the company you choose complies with every step of the process. All plans include access to The Credit Pro mobile app, which allows you to review disputes, receive real-time updates, and monitor your credit score and report.
This is because credit repair companies can only help eliminate errors; they cannot delete harmful but correct information. Since most credit repair services charge per month, it is wise to budget at least six months of service charges. If you don't take any steps to improve your credit score, it may be a while before your credit score improves (if it ever does). Lower Credit Scores Lead to Unfavorable Interest Rates, High Fees, and Difficulty Finding Credit Approval.
Credit repair, alternatively, is when someone pays a third-party company to try to get negative information removed from credit reports. Credit repair can be free or it can cost more than a thousand dollars, it's up to you how you want to handle it. . .