It’s common for credit reports to contain errors that can significantly ding your credit score. A reputable credit repair company can find those errors and work to get them corrected or removed from your report.
Choosing the best credit repair company depends on your individual needs and budget. Here are some tips to help you decide.
1. Reputation
One of the most important factors to consider when choosing a credit repair company is their reputation. A reputable agency should comply with the Credit Repair Organizations Act and offer a money-back guarantee.
A good credit repair agency will help to remove inaccurate information from your credit report including late payments, collection items, bankruptcies and liens. They will also send letters to creditors requesting verification of information and dispute errors with the credit bureaus.
Make sure you choose a reputable credit repair service that is BBB accredited. Avoid any companies that have a lot of negative reviews or are facing legal action. Also, look for a company that offers an affordable monthly plan and has a satisfaction guarantee. Sky Blue, for example, has a flat-rate monthly membership for $79 and is a great choice for value.
2. Experience
Credit repair companies help consumers by disputing negative, inaccurate information on their credit reports. They also negotiate with lenders, creditors and credit bureaus on their clients’ behalf.
Lexington Law, for example, says it has helped its customers remove more than 77 million errors since 2004 and has a team of lawyers on staff to explore all legal options to get those mistakes removed.
When searching for a credit repair company, check reviews on platforms like Google, the Better Business Bureau and Trustpilot. Look for positive testimonials and be wary of any complaints that may be red flags. Also, find out whether the company charges a one-time setup fee and if you can pause your subscription without canceling it completely. These details will help you determine whether a credit repair company is worth the cost.
3. Fees
Credit repair agencies should be clear about their costs and services. They should also provide a written contract that includes the company’s promise of results, any fees associated with those promises and the total cost for their services. A red flag is a credit repair agency that demands payment upfront without performing any services. This is illegal and a violation of the Credit Repair Organizations Act.
Choosing the right credit repair company can save you time and money. However, it’s important to do your research before hiring one. Look for companies that offer a free consultation and have excellent reputations and round-the-clock client support. You can also improve your credit on your own by disputing errors with the three credit bureaus and by seeking free or low-cost debt counseling from nonprofit organizations.
4. Options
When searching for a reputable credit repair company, look for a variety of options to choose from. Avoid companies that charge upfront for a consultation or have high monthly fees for their services. Instead, look for a company that offers a free initial consultation and provides an honest assessment of the price of their services.
The best credit repair companies have a money back guarantee and provide a thorough review of your credit report. They also allow you to monitor changes to your credit report and score in an easy to use online account. Moreover, they can send debt validation letters and cease-and-desist letters to creditors, and may even offer dark web monitoring to alert you if your personal information is leaked. These measures can all lead to an improved credit score, saving you thousands of dollars in interest over the life of a loan or mortgage.
5. Results
Credit repair companies typically offer free consultations and a clear description of their work. They also provide a money-back guarantee and let you monitor progress through an online account.
A reputable credit repair company will work to identify questionable items on your report that are damaging your credit score and then dispute them with the credit bureaus. These actions can raise your credit score by as many as 100-200 points, depending on the circumstances.
It’s best to avoid any credit repair companies that demand payment upfront before doing any work. This is a violation of the Consumer Credit Reporting Act (CROA). However, some agencies still request payments before providing services and may withhold information or feed you misinformation. Ask a company about their policy and whether they have a cancellation fee before signing a contract.