Best Credit Repair Companies

Introduction to Credit Repair Companies

Have you found yourself reviewing your credit report and thinking “how to fix my credit?” Poor credit may limit your ability to get approved for credit cards, a mortgage, or a personal loan. You may be making an effort into improving your credit, but you are getting frustrated because your credit score is not reflecting your efforts.

You could have items listed on your credit report in error bringing your score down. This is where credit repair can help, and we have all of the scoop on the best credit repair companies.

What is the Purpose of Credit Repair Companies?

Legitimate credit repair companies can review your credit and work to have inaccurate information removed from your credit reports so your credit score improves. Do-it-all credit repair is sufficient under certain circumstances, but most issues will require the assistance of a credit restoration professional.

Credit repair agencies can assist you to become a better application for many types of financial products and services by reviewing your credit reports, identifying errors and inconsistent entries, and then disputing them with the creditors and credit bureaus on your behalf.

Credit report errors and inaccuracies really are common which surprises most people. For example, you may have a collection account on your credit report that has been sold to several debt collection agencies. This account information should be displayed on your credit report once; however, it can appear many times in error. This is the perfect example of a complicated situation where it would be in your best interest to hire a credit repair specialist rather than tackle the issue yourself.

How Do Credit Repair Companies Work?

Credit repair companies hire professionals with knowledge and experience in credit repair to help tackle difficult credit issues that would be hard or even impossible for you to handle on your own. They are experts and make credit repair easier and faster because they understand the types of issues to look for and the steps that need to be taken to resolve these errors.

Established credit repair companies are very well informed about what to demand from creditors and the credit bureaus on behalf of their clientele.

Credit repair companies are different from credit counseling agencies. It is important you understand the difference. Credit counseling agencies are often structured as non-profit organizations. Credit counseling agencies mainly focus on helping people get their credit report and then provide advice about debt and how to manage finances. Credit repair companies do so much more. We’ve written out a quick overview of what all credit report agencies do and how credit repair companies work.

Request and Analyze Credit Reports

Credit repair companies get started by contacting the three major consumer credit bureaus to order copies of your credit report. The three major credit bureaus are: Experian, Equifax, and TransUnion. It is very important to pull reports from all three agencies, as each agency has its own data sources–lenders, debt collectors, credit card companies and more. There may be an error displayed on one of your credit reports, but it does not appear on the other two.

After pulling the necessary credit reports, legitimate credit repair companies will then analyze each report to point out any potentially negative issues. At this stage in credit repair, the credit repair companies look for derogatory marks which are negative, long-lasting reports of charge-offs, late payments, bankruptcies and tax liens, so that they can dispute with the credit bureaus.

Report Negative Items with Creditors

Credit repair experts will develop a plan for correcting any errors and negotiate with creditors to remove the negative items once the errors and inconsistencies on your credit report have been identified. It is highly likely you will be asked to give the credit repair company documentation they may need to proceed with their plan. Fixing your credit may include sending requests validating personal information, cease-and-desist letters to your debt collections, and letters to dispute any erroneous derogatory information.

After receiving disputes and supporting paperwork, credit bureaus and debt collectors will then work with your credit repair experts to then determine if specific negative remarks need to be corrected or totally removed from your credit report.

Legitimate credit repair companies will eliminate questionable items on your credit report by utilizing provisions of the Fair Credit Reporting Act, which is a major law governing consumer rights pertaining to credit reporting, the Fair Credit Billing Act, and the Fair Debt Collection Practices Act.

How Long Do Negative Items Stay On Your Credit Report?

Negative items could include evictions, a repo, charge-offs, late payments, bankruptcies, foreclosures, and tax liens. Many people are familiar with the “7 year rule,” however, there are other factors that can apply.

Some derogatory marks can linger for up to 10 years on your credit report. Damage to your credit score due to negative marks means you may not qualify for new credit, or you may be charged more in interest on loans or credit cards.

How long do late payments stay on credit record?

Late payments that are not on your credit report in error typically stay on for 7 years. Only derogatory marks that are errors can be disputed and possibly removed from your credit report.

How long does an eviction stay on your record?

The federal Fair Credit Reporting Act allows companies who screen tenants to access and report eviction court records for up to but not more than seven years. Past evictions can continue to haunt people as they get new jobs and attempt to rebuild their financial life.

How long does a repo stay on your credit?

Repossessions remain on your credit for 7 years. If you do not or are unable to pay for an item, like a car, the lender can legally come and take it. They usually do this without warning. Make sure to keep all other bills up to date if you have a repossession on your credit report. On-time payments and time can help improve the damage a repossession does to your credit.

Does Paying Off Collections Improve Credit Score?

A credit repair company would be able to help you determine if paying off collection accounts only our credit report would improve your credit score. You may be asking yourself how to get collections off credit report. Unfortunately, paying collections accounts typically do not improve your credit score.

Derogatory remarks can remain on your credit reports for up to seven years. It is likely that your score will not improve until the listing is removed.

How to Remove Late Payments from Credit Report?

Incorrect or old late payments on your credit report can be removed by disputing them with the credit bureaus that list the derogatory items on your credit report. If the late payment is legitimate, you could write a letter to the creditor with an explanation why you paid late. Ask your creditor to forgive the late payment and promise them it will not happen again.

This process can become tedious, and depending on your credit history, items could be overlooked. We recommend hiring a reputable credit repair company to help.

Is It Possible to Remove Charge Offs?

First, you need to understand what a charge-off is. A charge off is debt that is not forgiven or written-off, but the creditor has deemed it unlikely to be paid. Any items that are not legitimate can be disputed. If a charge off on your credit report is valid, there are steps you can take to possibly have it removed.

Perhaps you want to learn how to remove a charge off without paying. While it is possible by negotiating directly with your creditors, we do not recommend it. We recommend hiring a professional credit repair agency to assist.

Can I Remove Closed Accounts from My Credit Report?

Closed accounts are accounts where you nor the creditor can make changes to it any longer. Closed accounts do impact your credit score. How to remove a closed account from your credit report is much like requesting to remove any other derogatory remarks from your credit. If the account is legit and paid in full, you can write to your creditor and ask them to remove it from your credit report. If the closed account is inaccurate, you can dispute it with the credit bureaus.

What are Hard Inquiries?

Hard inquiries appear on your credit report each time a creditor runs your credit report. If you are trying to get a loan, buy a car, buy a house, or get a new credit card, the company overseeing the debt will run a hard inquiry to pull your credit report. They will then review your credit report to determine if you will be approved or what interest rate you will be charged.

Hard inquiries stay on your credit report for up to two years. To learn how to remove inquiries from credit reports, you can consult with a professional or do a little research on your own. Learning how to remove hard inquiries is not as daunting as it may seem. Please keep in mind that hard inquiries that are legitimate are impossible to remove. You will have no choice but to wait until they expire and fall off of your credit reports.

Monitor Credit Profile

After subscribing to a credit repair company’s service, your assigned financial advisor will monitor your case and schedule periodic meetings and calls to keep you updated.

Credit monitoring is more than just protecting oneself against identity theft. The service also helps make you aware of any other updates or changes made to your credit report. In addition to notifying you of any changes and monitoring your credit report, top-rated credit repair companies also educate by offering detailed explanations on why specific items reported to your credit may impact your score and how.

Tools for Better Financial Health

Improving your credit score isn’t always enough. A good credit repair company will not only stress the importance of improving your credit scores, but they will also educate you on how to make better financial decisions. They may offer educational resources and financial management tools like bill reminders or budgeting to help navigate you through necessary steps you must take to reach and maintain your credit goals and a healthy credit score.

What to Look for in Credit Repair Companies

Searching for legitimate credit repair companies seems intimidating, but it doesn’t have to be. Read reviews on credit repair companies, ask questions, and make sure you research what these companies legally can do so you don’t fall for any false promises. Doing your homework can protect you from future stress, and will give you more tools for money management.

When we search for credit repair companies, we search for established companies that provide their services nationwide. We look at each company’s reputation and regulatory enforcement action. We then company each company’s package pricing options, services offered per package, and transparency. We don’t like surprises, and we know you won't either!

Watch out for Scams

There are shady companies in the credit repair industry, just as there are shady companies in any industry. It’s unfortunate, but it’s better to be aware than naive. Before you make the decision to commit to any credit repair organization, do your research and check their track record. There are way to avoid credit repair scams. According to the Credit Repair Organizations Act, you have the right to cancel service within three days, regardless of the reason, and credit restoration services are not able to promise any improvements in advance.

Here’s what we recommend:

• - Research if the company is BBB-accredited. Read reviews if they are accredited by the Better Business Bureau on their website
• - Read complaints in the Consumer Financial Protection Bureau database if there are any listed for the company you’re researching
• - Research several websites for additional credit repair company reviews by users
• - Avoid deals that sound too good to be true

Be wary of the following red flags and suspicious details as outlined by the Federal Trade Commission (FTC):

Heavily encouraging new credit: Establishing new accounts can be part of a credit restoration strategy used by even the most legitimate credit repair companies to help rebuild credit; however, this can backfire if this tactic is used too much.

Promoting a specific credit card: Be aware that if a credit repair company immediately advises you to apply for a specific credit card right after you subscribe to their services, they may have a hidden agenda to earn commissions rather than really help you repair your credit.

Promising improved credit: NO ONE can guarantee improved credit. Remember that. If a credit repair company’s offer sounds too good to be true, it probably is. A money-back guarantee is reasonable. BUT, if a company makes promises to remove accurate negative items from your credit report, improve your score by 100 points overnight, or create a completely new credit identity for you, we do not recommend you work with them.

Bragging about inside knowledge: The most established and trusted credit repair companies have built their reputation by persistence and efficiency. There are no secrets to credit repair that no one else in the industry knows about.

No contact: Credit repair companies should never demand that you not communicate with credit reporting bureaus or creditors on your own. They should encourage you to learn more and communicate effectively with credit reporting bureaus and creditors.

Large sum of money upfront: This industry is NOT allowed to charge fees in advance. If a credit repair company asks you for a large amount of money up front, don’t do it.

No phone number: We all prefer to communicate via email, but don’t let that distract you from ensuring the credit repair company you’re considering working with does have a valid, working phone number.

Poor website design: Websites make first impressions. If you’re researching credit repair organizations, make sure their site is easy to navigate and isn’t missing any features. Websites thrown together with little information are probably scammers. Don’t send any information over unsecured websites or to any odd email addresses.

How Much Does Credit Repair Cost?

Fees for credit repair can vary depending on the level of service you need, the provider, and what state you live in. While service plans and pricing can vary from company to company, all credit repair companies have one universal rule. They cannot receive payment believe delivering agreed-upon results.

Some credit repair companies will charge you a fee for each derogatory mark they remove from your credit reports, or they’ll have you pay a one-time flat fee. Typically, these fees start around $35 per deletion, but they can go up to $750 or more.

Other credit repair companies charge monthly fees which usually range between $50 to $130. They may also require a setup or report-accessing fee.

How Long Does Credit Repair Really Take?

While there are no quick fixes for credit repair, hiring a credit restoration company to assist you in removing inaccurate information and erroneous negative remarks from your credit reports is one of the most efficient and fastest ways to improve your credit score. Some consumers have much more complex credit issues than others so it really is difficult to tell exactly how quickly you can expect your credit to improve.

All of the credit bureaus have 30 to 45 days to investigate, respond and resolve disputes. The timeline is fairly short considering. If you just need a few mistakes corrected, your credit correction could take just a month or two. On average, resolving all issues on your credit report takes about three to six months.

3 Tips for Working with a Credit Repair Company

If you need to repair your credit, hiring a credit repair specialist to help improve your credit score may not be your only option. There are several approaches you could take, and combining a few approaches could be your best option. Here are three things you should consider before embarking on your credit repair journey.

1. Do You Need Credit Repair Services?

If your goal is to improve a poor credit profile, ask yourself the following question, “Do you need help from a credit repair specialist, or can you repair your credit yourself?”

If you just have a few errors that are obvious or some inconsistencies on your report, we advise you to fix them on your own. If you have a more complex credit situation, and you don’t have the knowledge or time to take it on yourself, then you should consider hiring an expert. Just keep in mind that cleaning up your credit will take time and only specific types of negative information can actually be removed from your reports.

2. Merge a DIY Approach with Credit Repair Services

It is possible to fix your own credit. That is a legitimate option. Choosing the best approach to take is a matter of determining how much work your credit profile needs.

The best way to take on your credit issues may be a mixture of upgrading your credit on your own then finding professional help. Our suggestion is for you to assess your full credit picture on your own before hiring a legitimate credit repair professional. This will allow you to be fully aware of your credit situation, and you will then understand any progress as it’s made.

3. Consider Alternatives and Work Independently

If you don’t work on improving your spending habits and aren’t careful with your credit cards, hiring a credit repair specialist really doesn’t make any sense. You want to consider the following:

Credit repair software: Fixing errors can be less daunting with credit repair software to guide you through the process.

Credit counseling: Credit counselors will assist you in understanding your finances and current credit score, and they can provide you advice on paying off your debts and how to repair your credit score.

Debt consolidation: Debt consolidation is a tool used to refinance multiple debts that have less than desired terms.

Debt settlement services: Debt settlement allows you to pay a lump sum that is usually half of what you owe. Creditors will agree to accept partial payment as payment in full. This option won't improve your credit score immediately. It could be listed as a “write-off” with severe negative effects on your score. But, resolving your debt will improve your credit score in the future.

Make sure to read our detailed reviews of other types of financial services.

FAQ

Can I raise my credit score to 800?

If you pay all of your bills on time, avoid unnecessary loans, and dispute negative items on your credit reports, you could. Study your credit situation on your own or with the help of a credit repair company, and develop the best course of action.

Should I pay someone to fix my credit?

It is definitely worth it to avoid the hassle of doing it yourself, and you will be able to monitor the status of each and every issue found on your credit reports. Make sure to read through out credit repair company reviews to find a legitimate and reliable credit repair company.

What’s the fastest way to repair my credit?

Simply, there is no fast way. Keep that in mind. Whether you need a rewards credit card, a loan with lower repayment terms, or to finance something bigger, make sure you’re paying all of your bills on time. Keep an eye on your credit report and dispute any irregularities you find. Don’t apply for new credit cards until your score starts improving.

Are credit card repair companies legit?

Many are and there may be some that aren’t. All credit repair companies with BBB accreditation are considered legitimate in this industry. If you don’t find a company listed with the BBB, you can search for user reviews, and you will learn if a company is worth working with.

How much will it cost to repair my credit?

It depends on the company. Some companies will have you pay a one-time flat fee for service, or you may be charged individually for each derogatory mark removed from your credit reports. Fees typically start about $35 per deletion, but it can go t o $750 or more.

Do free credit repair services work?

Yes, they can. Companies that offer free services can help you improve your score by disputing irregularities found on your credit reports. It is possible to do this yourself, but it is a tedious process. Hiring a credit repair service saves time and energy.

How long do negative items stay on my credit report?

Evictions, repossessions, judgements, liens, charge-offs, and late payments can stay on your credit report for some time. Each item will have a date it was reported to your credit report, and a credit repair agency will ensure that no items over the time limit remain on your credit report.

How do I remove closed accounts from my credit report?

There are a few ways to remove a closed account from your credit report.You can research how to do this on your own, or you can hire a credit repair agency to help.