If you need help, you can hire a credit repair company to help you. Maybe you're dealing with sky-high interest rates, oppressive charges, or you just can't find the loan you need because of your bad credit. But with a legitimate credit repair company, such as the ones listed below, you can correct any inaccuracies reported to a credit bureau and improve your credit rating. Each credit repair service below will charge a monthly fee for their 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 screening services, debt validation letters, submitting goodwill letters and writing dispute letters, among other services. While both levels provide you with a professional credit analyst, the basic level only considers dispute letters and follow-up. The premium tier will provide you with credit rating monitoring, goodwill letter submissions, unlimited challenge validation letters, and a final recommendation letter.
This agency states that many clients see results within 15 to 30 days because the company immediately begins sending dispute and debt validation letters 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 dedicated credit repair specialist who is supervised by a licensed attorney. New customers have a five-day money-back guarantee to try out the service.
If they are not satisfied, they can receive a full refund of the down payment. 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's no way to know how long your disputes will last, most agencies charge by the month. In most cases, you can cancel your service and stop making payments with 30 days' 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 in your credit reports, such as late payments, default, or bankruptcy, you will have to wait until those items expire in your reports.
This can take between two and 10 years, depending on the type of negative element. A credit repair company can only dispute inaccurate items in its credit report and challenge its creditors to verify legitimate items. It is illegal to claim that a legitimate item is inaccurate when filing letters of dispute. In some cases, a repair service may file a letter of goodwill on your behalf to ask the debt collector to remove an accurately reported negative item.
This is not a guaranteed process and it is completely up to the debt holder to accept or deny the request. The time you'll need to repair your credit will depend on the amount of work you need to complete. For example, it may take you a month or less to eliminate some inaccuracies in 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 make a decision. 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 question any credit repair service that claims it can delete 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 in your credit report, you may want 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 cares about your interests. These companies want their credit rating to improve through legal means. While the monthly fee may seem high, it's a minimal cost compared to the amount you'll pay in interest, fees, and charges if you live on poor credit. Consider credit repair as an investment in your future.
The Credit Repair Organizations Act requires companies to provide you with a firm total of costs and an estimate of how long it will take to get results. It also gives you three business days to cancel services free of charge. The cost of credit repair services varies widely depending on the company you choose and the services you want. Because credit repair companies are prohibited from charging upfront fees for work that has not yet been performed, the fee you will be charged each month will be for work completed the previous month.
It helps you assess your credit history and guides you through the process of filing and following up on letters of credit disputes. Ulezheimer further explains that “in order to comply with the CROA's advance fee provision, the credit repair company must first disclose to its customer in writing what it receives for the monthly payment and, second, be able to prove that the services were provided in full during the previous month. Also keep in mind that credit repair is limited to the act of removing inaccurate derogatory comments from your report. When selecting the best credit repair company for you, be sure to read the fine print to discover any additional charges, such as a first job charge, that is common in the industry.
With a better credit score, you'll appear more trustworthy to lenders, get better interest rates on loans and credit cards, and have a better chance of getting financing overall. There are many other things you can do to repair your credit, all of which are explained in the DIY guide: using goodwill letters, what to do with zombie debt, how to eliminate inquiries, add personal statements to your credit reports, how to negotiate an elimination payment, how the statute of limitations affects your debt, record keeping, monitoring your credit, creating positive credit and more. There, you can track the progress of your account in real time and get updates to your credit report and credit rating. Since most credit repair services charge per month, it's a good idea to budget for at least six months of service charges.
In other words, you should avoid any credit repair company that asks you to pay charges “up front” or “up front” before you've completed the work you're paying for. This consultancy offers discounts for couples if you are ready to tackle the credit repair process with your partner. This initial charge acts as a setup charge for your account and allows the credit repair business to start working on your case, which can include unlimited disputes at their highest levels. But keep in mind that credit repair companies can't do anything that you can't accomplish on your own.