How to Choose a Credit Repair Company
A credit repair company is a service that works to get inaccurate negative marks removed from your credit report. These companies often charge a monthly fee to do so. Some companies focus on disputing errors while others offer additional services, like negotiating with creditors and providing educational resources. Some companies even include identity theft protection and a credit score tracker as part of their package.
Which credit repair company is best for you depends on your needs and budget. When comparing credit repair companies, you should consider the upfront and monthly fees as well as whether they have any guarantees or extra perks. Online consumer reviews, which can be found through sites like Google Reviews, the Better Business Bureau and Yelp, are also a good starting point for gauging customer satisfaction.
Choosing the right credit repair company is a process that can take several months to complete, so be patient and be sure to compare prices before choosing one. Ensure that the credit repair company you choose is legitimate by reviewing its website and checking for a CROA compliance certificate. Additionally, check to see if the company is accredited with the Better Business Bureau or other national trade associations.
The first step in the credit repair process is ordering copies of your credit reports from Experian, Equifax and TransUnion. If the credit repair company finds any mistakes, they can file disputes with the reporting agencies on your behalf to have these errors corrected. However, a credit repair company cannot legally remove accurate positive information from your report or promise to increase your FICO score by a certain amount within a specific time frame, as these claims are illegal under the Credit Repair Organizations Act (CROA).
In addition to removing negative items from your credit report, many credit repair companies can help you resolve disputes with creditors and debt collectors. They may be able to negotiate lower settlement amounts or get debt validation letters sent to the creditor on your behalf. They can also advise you on financial steps to take, like opening a new credit card or managing outstanding balances, and provide educational materials to help you build and maintain a healthy credit profile.
The top credit repair companies provide a wide range of services for varying price points. Some offer a flat monthly fee that includes all dispute services, while others have tiered monthly pricing. For example, Lexington Law is a trusted name in the industry and provides credit repair services for an average of $100 per month. Their cheapest plan, Essential, comes with a case advisor who will guide you through the dispute process and advise you on future financial planning, while their most expensive option, Safeport Law, assigns attorneys to each client and offers a money-back guarantee. Other services available with the most competitive credit repair companies include credit monitoring, personal finance tools and a credit builder loan.
