Credit repair costs nothing if you handle the process yourself. There's nothing a credit repair company can do for you that you can't do for yourself. 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. However, with a legitimate credit repair company, such as those listed below, you can correct any inaccuracies reported to a credit agency and improve your credit rating.
Each of the credit repair services listed 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 agency on their behalf, some also offer credit monitoring, credit counseling, identity theft detection services, debt validation letters, sending goodwill letters, and writing dispute letters, among other services. While both levels provide you with a professional credit analyst, the basic level only includes letters of challenge and follow-up.
The premium level 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. Your Best Alternatives to Lexington Law Credit Repair. The cost of credit repair services varies greatly depending on the company you choose and the services you want. One of the most unfortunate parts of credit repair companies is that there are a lot of scammers hiding among legitimate companies.
The Credit Repair Organizations Act requires companies to provide you with a firm total of the costs and an estimate of how long it will take to get results. Believe it or not, you can repair your own credit for free and you don't need to pay anyone to do it. This is because credit repair companies can only help eliminate errors; they cannot delete information that is harmful, but it is correct. With the full credit repair service, you authorize the service to obtain your credit reports; in some cases, you pay a fee for that step.
This initial fee acts as an opening fee for your account and allows the credit repair company to start working on your case, which can include unlimited disputes at its highest levels. There are legitimate companies that offer credit repair services, but the field is also known for its scams, so it's important to research any company you're considering hiring. This consultancy offers discounts for couples if you're ready to tackle the credit repair process with your partner. When you repair your credit on your own, the cost ranges from nominal shipping costs to completely free.
According to the Credit Repair Organizations Act, only an attorney licensed to work in your state can file disputes on your behalf. Since most credit repair services charge per month, it's wise to budget for at least six months' worth of service fees. Credit repair can be free or it can cost more than a thousand dollars; you decide how you want to manage it. Pyramid Credit Repair is a rare agency that files unlimited disputes on behalf of a client every month.