If you believe a credit score that isn’t good won’t cause long term damages, then you may have to rethink. A bad credit score could make you lose thousands and sometimes hundreds of thousands of dollars for a variety of reasons but mostly due to an elevated rate of interest. Having a credit score that is bad might even stop you from ever being a home owner, retiring when you plan, going on a vacation to a destination of your dreams and it can also hinder you from getting the career you have always desired.
What can make you have a bad credit score? Late payment of bills, divorce and bankruptcy, could negatively affect your credit score. However, what if you have a low credit score due to obvious errors on your credit report? Maybe there is just an item for reasons not known appears more than once and is leading to continuous damage in your score. It is not fair when you have to pay interest rates and insurance premiums that are higher than usual because the wrong information about your financial history was entered by the credit bureaus. Various people have little or bad credit scores due to simple errors stated on their credit reports. This is why credit repair companies are in existence, to ensure these mistakes are corrected.
What is Credit Repair?
Credit repair has to do with the simple placement of your legal rights against inaccurate information on your credit report. For your report to consist of negative entries, these benchmarks must be attained;
- Reports must have 100 percent accuracy
- Entries have to be thoroughly validated
- Credit reports must be entirely fair
The companies and credit bureaus listed on your entries will be contacted on your behalf by credit repair companies to challenge the errors in a bid to remove them.
Can credit be fixed by Credit Repair Companies?
Your credit can be fixed by Credit Repair Companies as long as there is something that requires setting. In essence, if there are outdated information and errors on your credit reports as well as entries that have surpassed their time limits then yes, you can get assistance in fixing your credit from a credit repair company.
Nonetheless, if all the information on your credit is up to date and accurate, and there are no errors, then your credit cannot be fixed by them. Your credit can only be repaired in this situation if you come up with a firm plan to offset your debts.
Are Credit Repair Companies Legit?
The majority of the credit repair companies are reputable and take pride in ensuring they provide you with the most available service possible and do all they can to fix your credit. Nonetheless, there are some warning signs to look out for.
They make offers such as; instant 100-point increase in credit score. It isn’t legal for a credit repair company to make promises on the effects you will experience in utilising their services.
They ask for an advance in payment. It was made illegal by the Fair Trade Commission for any credit repair company to request payment before they do any work to elevate your credit score.
They have minimal understanding and knowledge for your rights as customers.
They make claims that they can eradicate all negative entries even if the entries are correct. While credit repair companies can eliminate incorrect entries from your credit report, they do not have the capacity to take out current and accurate entries.
The Credit Repair Organizations Act was designed to shield you from scams that have to do with credit repair. If the company you are trying to use does any of the statements above, stay away from them. You can also check out a company on the website for Better Business Bureau website to view reports on the performance of the enterprise using the experience of previous customers.
Are Credit Repair Companies Worth It?
You need to ask yourself a few questions to answer this question. Firstly, do you have errors on your credit report? Are there entries on your report that took place more than seven years ago? Are there negative entries on your report that were posted more than once? Are these errors stopping your credit score from rising or worse, making them reduce? If yes was the answer to any one of these question, then a credit repair company is worth it.
How do Credit Repair Companies Fix Your Credit?
A credit repair company that is experienced will aid in the improvement of your credit score by;
Having knowledge of the rules and regulations created to protect consumers
Having knowledge on how to deal with individual credit problems
Knowing the legal loopholes in existence to deal with credit problems
A credit repair company will help in reviewing your all three of your credit reports because every reporting agency utilises various sources for the information placed on your credit report. By examining these three credit reports, your unique case can be handled more thoroughly by the credit repair company.
Immediately they are done reviewing your reports, entries which are believed to be incorrect will be identified. However, fixing your credit goes further than the simple filling of disputes with credit bureaus. The process may seem simple, but it is a tedious task in reality. Most times, credit repair companies will have to bargain with creditors themselves to aid in correcting your credit issues.
Should I Use A Credit Repair Company?
Except you have sufficient time and organisational skills to write numerous emails, spend hours on the phone with creditors and credit bureaus and keep track of all written documents that have to do with the repair of your credit report, then it’s appropriate you utilise a credit repair company.
Nonetheless. If the report you wish to dispute is little, you can do it yourself. Credit fixing is made easier by credit repair companies by dealing with all the issues and problems that come with this type of situation. If you want to deal with this yourself, it is not stated that you must utilise any company. For additional information on ways to clear up errors on your credit report, click here.
Cost of Credit Repair Services
The amount charged for credit repairs varies among companies. However, this type of service costs and average of $50-$100
Credit Repair Fees
As well as the monthly service fee charged by the credit repair company, additional fees may be included. Most companies have a onetime fee which they charge. It is around #15 to pull your credit reports. The company you desire to use should be asked for additional charges you might incur.
Non-Profit Credit Repair Companies
Credit repair companies that are Non-profits are not in existence. A fee is charged by credit repair companies to carry out all the needed legal work required to repair your score and credit history. However, there are various non-profit credit counselling companies that will willingly aid you in getting your finances on track. Check out their background to ensure they have a good reputation before you request their services, so you don’t get scammed.
Can You Pay to Clear Your Credit History?
You may have come across companies that promise that they can eradicate your bad accounts for a fee which is very high from your credit reports. Before making the decision to utilise one of these pay-for-delete-services, do so with caution because firstly, they are quite expensive. Secondly, there is no certainty that your score will be better or that they will remove the negative accounts from your credit reports.
Instant Credit Repair
When it comes to the elevation of your credit score and fixing your credit. There is nothing like immediate. It takes months and sometimes years to correct credits and see the required results. However, there are services known as rapid rescoring services that are made available by independent credit reporting agencies and are utilized by lenders and mortgage brokers who are making efforts to get loans with better rates for their customers. If these services are being offered to you directly instead of through a credit agency or your broker, it’s probably a scam.
Fixing Credit Scores Illegally
“Jamming” is recognized as a fraud that is utilized by a majority of the pay-to-delete agencies. Everything negative is repeatedly disputed on your credit report hoping that at least one dispute will get stuck when validation of the negative entry in the 30-day window is not carried out by the lender. This method of fixing your credit has two main pitfalls. First, once the lender reports to the credit bureau, the negative entry will resurface. Second, it is a scam that costs you more money alongside being illegal only to end up having the same poor credit score after 30 days.
Should I Use A Loan To Fix My Credit?
Some lenders deal in lending to customers that have poor credit. They usually call them “credit repair loans”. Getting a loan and making payment at the appropriate time till the debt is paid off may aid in improving your credit score. Nonetheless, it is only efficient if all three main credit bureaus are reported to by the lender, all inaccurate information from your credit reports have been eradicated and you have already begun making your unpaid debt current. Also, these kinds of loans come with the cost of rates which are very high
Credit Repairing Credit Cards
Just as listed above with utilizing loan to enhance your credit score, utilizing a credit card can also bounce back if you are not committed to making timely payments, keeping your balances minimal and resisting the temptation to use the card. If you can do this, utilizing a credit card for the improvement of your credit score is possible. If you have plans to obtain a credit card, for this reason, you may want to begin by sending an application for a basic credit card at the bank where you have a savings or checking account. This will ensure payments are as easy as transferring the cash from your account to carry out payments for your credit cards.
Credit Repair for a Mortgage
If your dream is to own a home of yours someday, you will need to ensure your credit score is as high as possible. The lower your score, the more tedious it will be to get a mortgage alongside good interest rate of you are able to get one at all. This will also mean a larger down payment will have to be paid by you if you gain approval.
Guaranteed Credit Repair Service
Unlike many organisations where a guarantee is seen as a good thing, in the industry of credit repair, it should be as a caution. Any credit services company that promises certain results should be evaded. In fact, if a credit company offers any form of guarantee it is in violation of the Credit Repair Organizations Act. So if the company you are looking to aid in repairing your credit provides a guarantee of improvement then look for alternatives.
Lawyers That Help With Credit Repair
Various services that are directed at rebuilding your credit can be carried out by a credit repair attorney. Some of these services involve negotiation with credit reporting bureaus, evaluation of possible errors on your credit reports and bargaining with your creditors for agreements.
Affordable Credit Repair
A monthly fee is charged by credit repair companies for their services. Searching online can aid you in locating a repair company that is budget friendly. Just ensure they are reputable before making payment. Check out reviews from prior customers and how they are rated on the Better Business Bureau website.
The Top 10 Credit Repair Companies/Agencies
You may be taken aback to know that if you carry out a Google search for credit repair companies, it will come up with about 13 million results. That is a lot to go through to locate the appropriate credit repair company for you.
Although each case is unique, the quality of the service they give should constantly be at 100 percent. To help ease your search here is a list of credit repair companies that aid people in fixing their credit issues.
- Cost/Fees: $79.95 – $119.95 Monthly / $19.95 For Credit Reports
- Telephone: 888-614-8516
- Website: lexingtonlaw.com
- Address: 360 N. Cutler Drive, North Salt Lake, Utah 84054
The Credit People
- Cost/Fees: $59 Monthly / $19 Setup Fee
- Telephone: 866-382-3410
- Website: thecreditpeople.com
- Address: 6975 S Union Park Ave,Suite 600, Cottonwood Heights, UT 84047
Sky Blue Credit Repair
- Cost/Fees: $59.95 Monthly / $59.95 Setup Fee
- Telephone: 888-906-1351
- Website: skybluecredit.com
- Address: 6001 Broken Sound Parkway,Ste 300, Boca Raton, FL 33487
MSI Credit Solutions
- Cost/Fees: $98 Monthly
- Telephone: 866-217-9841
- Website: msicredit.com
- Address: 12790 Merit Dr., Ste 614, Dallas, TX 75251
- Cost/Fees: $99.95 Monthly / $14.99 For Credit Reports
- Telephone: 855-382-1978
- Website: creditrepair.com
- Address: P.O. Box 3928, Salt Lake City, UT 84110
- Cost/Fees: $69 Monthly / $79 Setup Fee
- Telephone: 855-598-0446
- Website: mycreditgroup.com
- Address: 431 N. Graham St. #838, Stephenville, TX 76401
Veracity Credit Consultants
- Cost/Fees: $49 to $79 Monthly, Depending on Plan / $69 to $99, Depending on Plan
- Telephone: 866-518-2194
- Website: veracitycredit.com
- Address: P.O. Box 1140, Denver, CO 80201
- Cost/Fees: $59 Monthly / $89 First Work Fee
- Telephone: 866-639-3426
- Website: ovationcredit.com
- Address: 9310 Old Kings Road South Suite 404, Jacksonville, FL 32257
180 Credit Solutions
- Cost/Fees: Monthly Fee Varies Per Customer / Setup Fee Varies per Customer
- Telephone: 866-454-6252
- Website: 180creditsolutions.com
- Address: 7214 Hwy 78, Sachse, TX 75048
Park View Credit
- Cost/Fees: Monthly Fee Varies Per Customer / Setup Fee Varies per Customer
- Telephone: 888-991-6412
- Website: parkviewcredit.com
- Address: 17216 Saticoy St. #421, Van Nuys, CA 91406
The Number One Credit Repair Company
You will realize that Lexington Law Firm is situated on top of the list, they are there for some reasons. While there are various credit repair companies with good reputation. Lexington Law has vast experience and knowledge to aid people to get their credit back to the right direction.
Credit Repair Do It Yourself
If you have made the decision that you wish to fix the credit on your own, there are a few things to do before you begin.
Before you start preparation of your credit, you will need to have knowledge on precisely what is on your credit reports that you have fixed. You are going to require a copy of your credit reports from the three main credit bureaus Transunion, Ecperian, and Equifax. You can head to annualcreditreport.com and get a free copy of all the once in twelve months.
Once the errors on your reports have been located, start disputing them. Unfortunately, errors are frequent on credit reports. Check to ensure your address and name are correctly spelt and accurate. Check to make sure they have the appropriate Social Security number alongside.
Check if there are any errors in the credit history. If you locate the same error on multiple credit reports, disputation of the errors will be carried out with all bureau involved. Click here for dispute letter samples you will require sending across to the credit bureaus.
Once you have made repairs of your credit reports, the remainder of the repair process it left to you.
- Ensure your debts are paid down, especially credit card debt
- Ensure all bills are paid promptly
- -Avoid application for extra debt
Having a credit score which is low is not the solution. Because it is one of the most crucial three digit numbers you will have in life, it is critical that it is kept as high as possible and keeping your credit in excellent health. Having a credit repair company with experience can aid you in attaining this goal.