Before choosing a credit repair company, look for a company that offers a free consultation and a money back guarantee. Also, avoid companies that charge for a full credit report review and dispute service.
Legitimate credit repair companies abide by the Credit Repair Organizations Act and are unlikely to make false claims or demand payment upfront. Before selecting a company, check its reputation online for complaints and other red flags.
1. Reputation
Credit repair companies can help you clean up errors on your credit report that could be hurting your score or making it difficult to get loans. They can also help you improve your credit by helping you develop better financial habits and providing guidance on negotiating with creditors to settle debts.
The best credit repair services will have a solid reputation, reasonable monthly fees and plenty of experience. Look for services that are accredited by the BBB and offer comprehensive packages with tools like inquiry disputes, credit educational materials and cease-and-desist letters.
Lexington Law is one of the oldest and most experienced credit repair services, and its lawyers and paralegals are adept at navigating credit dispute processes. It also offers a flexible cancellation policy and satisfaction guarantee for its clients. However, it’s important to note that no company can promise to remove all legitimate negative items from your credit report. This is because some items are only allowed to stay on your credit report for seven to 10 years.
2. Experience
Credit repair companies can help clients dispute errors on their credit reports, which can boost scores and make it easier to get a loan. However, it’s important to understand what credit repair services can and cannot do for you. Credit repair companies can’t remove accurate negative information from your report, but they can clean up mistakes that may hurt your score and lead to higher interest rates for mortgages and car loans.
Typically, the best credit repair agencies will have years of experience and offer a money back guarantee for their services. They also will update you on the status of each item being disputed with the bureaus and creditors. They can often also provide additional perks like identity theft protection and financial management apps that are structured in a tiered monthly fee system. They’ll also offer a personalized online portal and ongoing credit monitoring. This allows you to monitor your progress at any time, anywhere.
3. Fees
There are alternative ways to improve your credit, including working on your own or seeking free or low-cost credit counseling from nonprofit organizations. While it may take more time to improve your credit this way, it can be equally effective. In any case, it’s important to have realistic expectations when choosing a credit repair company. For example, you should avoid companies that demand upfront payments or make outrageous claims, like guaranteeing they can remove accurate information from your report or creating a new credit identity for you.
Reputable credit repair companies usually start by pulling your reports from all three agencies and then analyzing them to pinpoint errors and inconsistencies. They then develop a strategy to dispute these inaccuracies and negotiate with creditors on your behalf. In addition, some may offer other financial tools, like credit score trackers and budgeting software. It’s also important to look for a company that offers a money-back guarantee and charges a monthly fee, rather than charging per credit bureau dispute or creditor intervention.
4. Customer service
Reputable credit repair services are adept at scrubbing questionable items from your credit report, such as inaccurate collection accounts, debts that are not in collections or are too old, and other misreported data. However, if you have doubts about a credit repair company’s claims, search the Better Business Bureau and Consumer Financial Protection Bureau databases for complaints and red flags.
In addition, the best credit repair companies are transparent and communicate well with customers. They also provide educational resources and regular progress reports. Be wary of any credit repair companies that promise to improve your score overnight or prohibit you from communicating directly with creditors and the credit reporting agencies.
While the credit repair process is time-consuming, a trusted service may be worth the investment. Check reviews, BBB ratings and Yelp to find a company that best fits your needs. Be sure to understand all fees, including a one-time consultation and monthly subscription fee before you sign a contract.