It’s advisable to choose the best credit repair companies if you want to improve your credit. The FTC (Federal Trade Commission) warns that there are many scams out there. They label themselves as credit repair companies, but it’s all a deceptive disguise.
This article aims to protect you by bringing you the much-needed awareness on the topic. It’s the ultimate guide to safely venture into the world of credit repair. It details;
- Benefits of credit repair and why you should avail them.
- How it works.
- Things to look for in a good credit repair company.
- How they repair your credit.
- The usual red flags a typical scam company shows.
- A list of the absolute best credit repair companies.
- And more!
It’s important to note that many of the things these companies do, could be done by individuals too! But, that requires experience, knowledge and a fair bit of time. If you’re clueless as to where you need to start, and struggling in debt – look no further. A great credit repair company can give you leverage, time, and support in dealing with it. Let’s start it off by highlighting the benefits of credit repair. 😃
Credit Repair Benefits
Imagine if someone’s already stuck in debt, and their expenses are outweighing income too…
In such a situation, they might think it’s stupid to incur even more expenses on such companies. That thought makes sense, but hear me out.
A low credit score may cost you a lot more than what these companies would charge. The benefits I’ve listed can elaborate further.
- A bad credit score translates into higher financial and interest charges on cards.
- A higher score could qualify you for better credit cards. Ones that offer lower rates and better rewards!
- Your lease or rental applications become more likely to get accepted. It’s a lot easier to find a good place to live.
- In real estate transactions, you’ll be in a better position for negotiations.
- A higher credit score simply opens up more opportunities. You could get financing for business easily. You could pay your college tuition or buy a promising investment property. Your credit score plays a huge role in all these possibilities.
- You will save a lot on essentially all insurance schemes. This includes home, life, and auto insurance products!
All these benefits sound dreamy, don’t they? But, they’re only achievable if you pick the right credit repair company. All of them aren’t the same at what they do. Here’s what sets them apart. 👇
What do the top credit repair companies do differently?
1. They know your rights well.
These companies won’t let your personal finance report suffer for nothing. If they see a questionable red flag appearing on it, they’ll dispute it on your behalf. Understanding laws and the rights of their consumers is their job. They make sure to engage all the right agencies for improvements in your credit report.
2. They can get you leverage.
They’ll work with you to find solutions. Developing a workable game plan for negotiating with creditors is an example of that. They’ll send you requests for validating claims and/or disputing negative or false info. All this leverage couldn’t come your way without their professional assistance.
3. These companies save you time.
Most people neither have the knowledge nor the time to work on their plummeting credit score. That’s where credit repair agencies have your back. They offer major credit overhauls to give you time to take care of other things. They can quickly handle bankruptcies, charge-offs, and late payments on your report.
4. You’ll save money through them.
Even though their services aren’t free, you’d still be saving money. They do this for you by improving your credit significantly. You’ll save on interest charges, insurance, credit card payments and whatnot. Many people save thousands of dollars on debt interest alone on a monthly basis.
A professional, well-trained, experienced team strives to solve your credit issues. That itself is a huge relief – it feels as though your worries are finally behind you. If you want to take that first step, you need to make sure that the right choices are made.
If you’re done with a weak credit score and a filthy personal finance report, then you’re in the right place. I’ve created this hand-picked list of credit repair companies just for you!
Best Credit Repair Companies of 2019
Not all credit repair companies are alike. Some of them are absolutely useless too, not gonna lie. Not only are they useless, but they cause more financial harm to an already struggling person. But, things were a lot worse before the ‘Credit Repair Organizations Act’ was passed in 1996 by the FTC. Since then, the services have improved a whole lot.
You should steer clear of companies that don’t have a good reputation in the market. Credit repair is a sensitive territory to explore. You can’t afford to screw things up there, especially if you’re already drowning in debt. If it was a car wash, giving it a try couldn’t bring too much harm. But when it comes to credit repair, stick to the professionals. Here’s a list of the best credit repair companies of 2019 that you can choose from! 👌
1. Credit Saint
This company was founded back in 2004, and they’ve got a long history of satisfied customers. They offer many different types of credit repair services. Their customer support is super reliable, and they seem to genuinely care about subscribers.
They offer a money-back guarantee that lasts as long as 90 days! This shows how confident they are in their services, while also making sure you get value for your money. Under the guarantee, they’re liable to provide a full refund if they fail to get rid of inaccurate items from your report. In this way, customers can try them out without involving any risk.
Depending on the level of credit repair you need, Credit Saint offers 3 main plans. The monthly fees are on par with other competitive names in the market, while the setup fee may be high. Their services have an average success rate of 95%, achieved within the first 2 months. Their customer support is available to subscribers all day, every day – 24/7. The Better Business Bureau gives them an A+ rating too!
2. Lexington Law
Lexington Law has been serving its valued customers for over 15 years, and it’s built a great reputation. They’re one of the most trustworthy credit repair companies in the industry. They offer varying repair options for individuals and couples. They can help you find solutions to all sorts of credit-related problems. They can also act on your behalf to engage creditors and the major credit reporting agencies.
There’s one thing that sets Lexington Law apart from other famous credit repair companies. With them, you’d have actual legal experts working on your side. For instance, suppose you’re trying to get your credit repaired for a mortgage loan. Lexington Law will make sure you get professional guidance that emphasizes that.
You’ll even be able to get consultations from licenses lawyers for free. They’ll provide you with a specialist dedicated to handling your case. You can expect price discounts and a variety of advanced services. 🙌
Try Lexington Law
CreditRepair.com is much similar in nature to the services mentioned above. It all ranks high up among the best credit repair companies in the industry. Like Credit Saint, they also offer a 90-day money-back guarantee to their subscribers.
You’d pay a setup fee of $14.99, and a monthly fee of a little under $100 a month. For that, you get unlimited follow-ups and disputes. You get free credit monitoring, credit reports, credit analysis, and progress reports!
What Do The Best Credit Repair Companies Do?
As we’ve established above, having a good credit score opens up countless opportunities. But, sadly enough, not everyone holds good credit.
That’s where credit repair companies come into play. They can work towards removing negative items that bring your credit report’s status down. In exchange, they charge a one-time set fee and monthly fees. They’ll start by reviewing your credit file. They check for derogatory remarks like tax liens, bankruptcies, late payments etc.
Once they’ve marked the disputable items, letters are sent to credit bureaus. Sometimes, requests for validation of such information may be sent out. Other times, it could be a simple request to stop collection activities.
Credit repair takes time and effort, which justifies a monthly fee. Repeated follow-ups may be required after forwarding certain requests to bureaus. Besides, you’d be saving more money on interest and credit card payments than the monthly fee itself.
One thing’s for sure, with credit card companies, your money won’t go to waste. Here’s what you should expect. 😏
1. Clear Terms and Expectations
Nothing happens with a swing of a magic stick. It takes time, and there are unavoidable constraints. Even the best companies out there have limitations as to how soon, and what, they can accomplish for you. Whatever sounds too good to be true, probably would be false.
Here’s a list of reasonable result-oriented expectations you can make from agencies;
- Improvement of 5-50 points in credit score.
- Noticeable improvement in credit score within 2 to 6 months.
- Engaging creditors effectively.
- Forwarding requests for correcting and validating information on your report.
- Providing guidance, resources, and expertise to help you raise your credit score.
- Keeping a close check for new entries made on your credit report.
- A separate online dashboard and an account.
Whenever you see a company claiming to shoot up your credit score by hundreds, within days… That’s a red flag. It points towards an obvious scam company trying to fool you – and there’s too much of that out there. A good company lets you know the real facts directly, whether you like them or not.
2. Accreditation and Reputation
Many credit repair companies are thriving in the industry today. Only a few of them could rise to the top, and for all the right reasons. They’ve managed to build a well-known reputation in the market as trustworthy names.
Like, companies such as Credit Saint and Lexington Law have been working for over a decade. They’ve earned their spot, and they’ve worked hard for the great ratings they get from the BBB. Their accreditation makes it so that you can’t go wrong with choosing them.
But you can find other worthy companies too, which could also be a great fit for your needs. Just do a few things to investigate their true colors, like checking out their BBB ratings. Visit their social media handles personally, and read customer reviews. Instead of their own website, visit review sites to find unbiased, legit opinions of the users. 🧐
3. Effective Dispute Strategies
Whatever the process a company follows, you’d be concerned with the outcome it obtains. Make sure the company you’re associating with has a known record for getting results. They should be able to get the following things done for you;
- Contact all creditors on your behalf.
- Work to remove negative and unexplained items on your credit report.
- Engage effectively with all three major credit bureaus.
- Correct mistakes and errors in your report.
- Monitoring the report for new entries and responding fast when they show up.
4. Ongoing Credit Monitoring
The monthly fee these companies earn gets justified by many aspects of their job. One of their duties is to keep a consistent check on your credit report. This continuous credit monitoring also includes transparent reporting and instant notifications. Make sure the service you sign up for monitors all three major credit bureaus. It’s a super important part of credit repair services, and a good company wouldn’t make compromises on it.
5. Reasonable Turnaround Times
You’ve made sure that a certain company is actually capable of improving your credit. But, how soon can they do that for you? That depends on factors like;
- How many items on your report need changes or attention.
- How long your creditors take before the company gets a response out of them.
- The strategies and tools the agency would use for credit repair.
- The experience of the company and its market reputation.
- Nature of the questionable report items – some could take longer than others to fix.
To start showing positive results on your credit score, most companies ask for about 60 days. By this time, they claim to be able to correct certain info or remove negative items from your report. In some cases though, it could take several months too. This is why most money-back guarantees stand for a period of 90 days! 👍
6. Competitive Fee Structure
Never judge the reasonableness of a credit repair company’s prices by the amount only. You never know, even though they’re the most expensive, they could be the most worth it. By this, I mean, they could be providing more and better services than other competitors. Cheaper offers may not charge you a lot but might not do much for you either.
The price you pay to credit repair companies should be seen as an investment, instead of an expense. Compare different companies and the offers they have. Weigh their services and reputation against the price they’re charging. Determine which company suits you the best, and make an informed decision.
7. Provide Educational Resources
Credit companies have are genuinely willing to educate you. The more you know about credit repair procedures, the easier it is for them to do their job too. The better credit repair companies aren’t only in it for the money. They publicize valuable resources, while the subscribers get a closer look.
Many service packages involve the ability to talk one-on-one with professionals. Not only do they work as a credit agent, but they also provide financial consultancy. They’ll give you counseling as a bonus, and often go the extra mile to help you learn more. Their only job is to improve your credit score, but you’ll feel an overall supportive environment too!
8. Superior Customer Service
As a subscriber, being able to trust the credit repair company is crucial. You should be able to open up about the most personal and private financial information. What’s the only way companies can ever win the trust of individual customers? Excellent service. Here’s what exceptional customer service should look like;
- You’ve got customer service available 24/7, whenever you need help.
- Transparency is a must! They communicate realistic expectations and stay true to their promises.
- The company offers great communication. Customers are regularly notified about credit report updates.
- You can trust the company to respond to your emails and receive your calls.
- The service agent assigned to you is helpful, friendly, and professional!
Point being, an ideal agency would be reliable, responsive and transparent. They give priority to your financial interests and act responsibly on your behalf. 🤝
What Do The Best Credit Repair Companies Look At?
Once you sign up for a particular credit repair service, the first thing they’ll do is review your report. Here’s what they look at;
1. Your Overall Credit History
All agencies or companies are supposed to get rid of items from your credit report after seven years. But that doesn’t happen, not all companies do so. What’s worse is that the credit bureaus sometimes won’t take action against this.
So, you’re left with outdated negative items on your credit report that shouldn’t even be there. Such things contribute to bringing your credit score down. The company will check out your entire credit history to locate such errors. They’ll deeply analyze every claim and item in detail.
2. Payment History
Just like your credit history goes through examination, your payment history does too. The credit repair company will view the payments you’ve made to different recipients. These include landlords, creditor repayments, utility expenses, and more. Every late payment gets reported to credit bureaus, like it or not. This has a negative effect on credit scores.
3. Your Debt
The goal of the initial report review is to find areas requiring special attention. If a little attention to a certain area could improve credit scores a lot, it’ll be prioritized.
Correcting mistakes in a report could be very rewarding in improving credit. For this purpose, companies will review how much debt you owe to creditors. Creditors aren’t always super active and precise at updating debtor balances.
Your report could list a creditor balance of $10,000 when you owe only $1500 to them in reality. These companies hence send out external confirmation letters. This helps them confirm balances and make the needed corrections. The lower they manage to get your balances, the higher your credit score climbs. ☝️
4. Loan Types
Yes, all types of loans represent money owed to other people. But they’re classified into categories such as;
- Credit card
- School loans
- Car loans
Different loan types can be grouped together based on length, amounts, and terms. Having several loan types on your credit report could affect your credit score. Your credit report company will try its best to clean up loans and loan types that have been paid, but not removed.
They’d be trying to organize your loans into minimal loan types. On your part, you should try your best not to open up new credit lines. Because this would act against the efforts of the agency. Teamwork makes the dream work! You’ll have to work with the company to get the best results in the shortest amount of time. All the best! 🤩
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