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. If this is the case, you may be considering hiring a credit repair service to help you improve your credit rating. Credit repair services can help you correct any inaccuracies reported to a credit agency and improve your credit score. In this article, we'll discuss the cost of hiring a credit repair service, what services they offer, and how to avoid credit repair scams.You can handle the credit repair process yourself for free.
However, if you choose to hire a professional credit repair company, such as those listed below, you will be charged 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 agency on your behalf, some also offer credit monitoring, credit counseling, identity theft detection services, debt validation letters, sending goodwill letters, and writing dispute letters.The premium level of service will allow you to monitor your credit score, send letters of goodwill, validation letters for unlimited challenges and a final letter of recommendation. This agency states that many clients see the results within 15 to 30 days because the company immediately begins sending dispute and debt validation letters on their behalf.
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 initial fee. Each month, the credit repair service you hire will file a certain 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 disputes will last, most agencies charge per month. In most cases, you can cancel your service and stop making payments by giving 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 items on your credit reports, such as a late payment, default, or bankruptcy, you'll have to wait for those items to 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 challenge the inaccurate elements of your credit report and challenge its creditors to verify the legitimate elements. It's illegal to claim that a legitimate item is inaccurate when filing dispute letters.In some cases, a repair service may file a letter of good will on your behalf to request a debt collector to withdraw an accurately reported negative item. This is not a guaranteed process and it is entirely up to the debtor to accept or deny the request.
The amount of time you need to repair your credit will depend on the amount of work you need to do.For example, it may take you a month or less to remove some inaccuracies from your credit report. Deeper disputes can take longer. When you file a dispute through a credit agency, 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 that any inaccurate information be removed from your credit report. This can be something 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 remove legitimate items, erase your valid debts, or completely clear your credit history. This is often a sign of a credit repair scam and rarely leaves you with a clean credit score. Instead, these fraudulent companies often clean up their bank accounts and flee.If you have negative items on your credit report, you could use an experienced credit repair company to handle this complex work for you.
The credit repair industry is generally 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 your interests into account. 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 and fees if you go through life with bad credit.
Consider credit repair as an investment in your future. These things can lower your credit rating and cause you to stop competing for a loan or credit card. If you're interested in using a credit counselor, the National Foundation for Credit Counseling offers low-cost debt counseling, debt consolidation, and debt management plans.When you repair your credit on your own, the cost ranges from nominal shipping costs to completely free. All plans include access to The Credit Pros mobile app which allows you to review disputes receive real-time updates and monitor your credit rating.
Experts can help you with financial measures you can take to improve your credit rating, such as opening a new credit card, or managing your outstanding balances.These services can send a challenge letter to each of the three major bureaus: Experian Equifax and TransUnion requesting them to investigate any inaccurate information in their records.