What Are Credit Repair Services?

For most people, having good credit is one of their main goals—especially when you consider the power of high credit scores in purchasing and investment opportunities. If you find yourself stuck with bad credit, most experts suggest working with credit repair companies.

A credit card company offers their service to help improve your credit score. Most of the time, credit card companies work on cleaning your credit report by removing negative items or possible errors and discussing them with the major credit bureaus.

Are Credit Repair Services Legitimate?

The premise of working with a company to improve your credit is something interesting, and there are many companies you can work with. However, amidst all the legitimate ones, there is also a possibility to fall victim to a scam within the credit repair industry.

Your credit information is highly valuable, and it holds a great influence on things you can get access to, so you should be very careful about the companies you work with. Here are some things you should consider before you work with a credit repair organization.

How To Identify If Your Credit Repair Company Is Legit

  1. A legitimate credit repair agency will only charge you after they are done providing their services. There would be no need to pay them upfront.
  2. Before anything else, they would start the credit repair process by conducting a credit report analysis from the three main bureaus: Equifax, Experian, and TransUnion.
  3. A legit company knows how to correspond with these bureaus to correct the errors on your credit report. Consequently, they will also help you in handling disputes if extra work is required.
  4. A good credit repair company will also offer free credit counseling to help you make the best choices to repair your credit.
  5. Finally, a trustworthy company will also operate strictly within the law and follows the guidelines stipulated in the federal Credit Repair Organizations Act.

How Long Will It Take To Rebuild Credit?

Rebuilding your credit rating is a process—and results do not show up overnight. Moreover, there are a number of factors that can affect how soon your credit score will improve, including your current financial state, your payment behavior, the amount of debt you are in, and your actions toward it.

If you work with a credit repair company, the credit bureau processes the issues stated in dispute letters within 30 days. However, this is just one factor, and there is no exact formula on how much a credit report correction can benefit your score.

What Debt Should I Pay off First To Raise My Credit Score?

On your road to better credit, one of the first things to do is pay off your debt. One of the best places to start is with revolving credit, particularly with your credit card debt. If you want to save more money, start paying your credit cards with higher interest rates, then those with high utilization ratios, and finally, your credit card with the lowest balance.

How Much Does It Cost to Repair My Credit?

Many credit repair companies work in different styles, so you can be charged in two possible ways if you decide to get their help in solving credit issues.

First, a credit repair company may charge you in a subscription-type method, wherein you will be billed for all services provided in a single month. In most cases, your bill will fall somewhere between $50 to $100.

Second, you may also work with a "Pay Per Delete" agreement with a credit repair company. With this style, you will only be charged every time an item is successfully removed from your credit report. This method is advantageous to many customers since you can see actual results from their services.

Is It Worth Paying Someone To Fix Your Credit?

A credit repair service can be beneficial for you if you do not have the time to attend to disputes, if you feel like the process is too complex, or if you don't have enough information on repairing credit. However, if you feel like you have one or two concerns, it may be better to handle things on your own.

Moreover, if your ultimate goal is to repair credit, there are other ways to do it aside from working with credit repair companies.

What Is the Best Credit Repair Service?

There are numerous credit repair companies, and they each come with their own strengths on the road to help you reach your credit goals. Based on reliability, cost, and effectiveness, here are our top three credit repair companies to work with:

1.) Credit Saint

Credit Saint has a solid record of helping thousands of people correct errors on their credit reports. In fact, they have 10 years of an A+ rating in Better Business Bureau. The company offers a free consultation and different credit repair packages depending on their credit situation.

2.) Lexington Law

Known as the biggest credit restoration company in the United States, Lexington Law can remove hundreds of thousands of negative items on clients' credit reports in a year. Since 1991, the company's team of lawyers and paralegals utilize their knowledge of the law to help customers deal with the disputes in their credit reports.

3.) Sky Blue Credit

For people looking for a credit repair company that is budget-friendly, Sky Blue Credit offers the best value for money. Signing up comes with free services in the first six days, plus a 90-day money-back guarantee. Additionally, Sky Blue Credit offers a monthly subscription while allowing customers to cancel at any time.

Frequently Asked Questions

Is 650 a good credit score?

On the FICO® Score scale, higher scores indicate a greater likelihood of repaying loans. A credit score of 650 falls in the fair range.

What is a 609 letter?

A 609 letter is a way to request the removal of negative information from your credit report, which comes from section 609 of the Fair Credit Reporting Act. An individual can file a 609 letter if they have been denied credit because of their history or are seeking employment and believe their credit may be hurting them.

Can credit repair companies remove late payments?

Late payments can stay on your credit report for up to seven years. If you find a late payment in your credit reports that shouldn't be there, you can file a dispute with the corresponding creditor or bureau and ask them to remove any inaccurate information.

How fast does your credit score go up after paying debt?

It often takes one to two months for debt payment information to be reflected on your credit score. This timeframe is influenced by a lot of factors, including the timing and monthly reporting process followed by lenders.

What is a goodwill adjustment?

A goodwill adjustment is when a lender agrees to retroactively make changes to the way it reports information on your credit report. This is an opportunity for borrowers to improve their financial situation without having to make further payments on loans or maintain perfect payment histories from hereon out.

There are many ways to improve your credit. Working with credit report companies and credit counseling agencies are just some of them. If you want to learn the ins and outs of credit, explore the free resources on Any Credit today!

Here at AnyCredit, we aim to make the most complex financial issues and topics easy to understand. In our articles, we will be making analysis, smart finance judgments, and honest conversations to help you make sense of your financial capacities and options.
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