Why would You Need a Credit Repair Company?
When you apply for any form of financing or loan, your credit score will be one of the primary things that lenders would investigate. This is because your credit score will reflect whether or not you are going to be a risky borrower, thus helping lenders decide if it is worth it to provide you with some sort of financing.
Nowadays, it’s not uncommon if you find yourself with an average or poor credit score, considering there are many people who are having a hard time paying off their debts on time. Unfortunately, having poor credit is not a good situation to be in, as it has a negative effect on your financial health. Getting any type of financing will also be hard and will likely result in a lot of rejections or very high-interest rates.
This is where credit repair companies come in, as they are designed to help fix your current credit rating and improve your score. But why would you need to get a credit repair company if you can do on your own almost everything that they can do for you? Well, it’s the same reason why people hire personal trainers, mechanics, gardeners, etc. They don’t have the patience and time to learn how to do it properly themselves, so they hire someone who can do it for them.
With credit repair companies, you will basically be paying for the convenience, time saving, and less hassle way of fixing your credit score. Yes, you can do all of it on your own, but if you don’t have the time or desire to do it, then you will need help and credit repair companies.
But with so many credit repair companies out there, which should you choose to help fix your credit? This article will be answering that question for you.
What a Credit Repair Company Can’t Do and Should Do
Before we discuss the best credit repair company that can help fix your credit, it’s important to first discuss what they can’t do and what you should be wary of. This is important to know since there are many companies out there that promise to fix your credit score only for them to scam you out of your money.
So knowing what they can’t do and what you need to be aware of when choosing a credit repair company will help you avoid the ones that are just out to scam you.
One of the first things that you should know is that any accurate but negative information on your credit report that is bringing down your credit score will stay there for at least seven years. This is the sad truth of having a bad credit, as only time can erase any negative information you have on your report as long as it is accurate. So if you have a bankruptcy on your report or a criminal record, they will stay there, unless it is proven that they are inaccurate. If a credit repair company says they will remove that accurate information on your report, then you better walk away, as they can never really do that.
Another thing that legit credit repair companies can’t do is to give you illegal advice. An example of an illegal advice is telling you to dispute all negative information on your credit report, even if the information is true, or creating a new credit identity just to get an approval for a loan. These things are illegal and will likely result in criminal charges against you, which can be a bigger problem than just your bad credit score.
Legitimate credit repair companies also don’t require upfront payment, as they will usually charge you after they have delivered the work you required from them. They will also advise you to contact the credit bureau directly to get a free report of your credit and disclose all of your legal rights before signing a contract with them. And it is required that you should have a written contract with them, detailing the services that they will be providing you.
It is also important to remember that a legit credit repair company will likely take 2 to 4 months before you can begin seeing the results of their work. This means companies that are promising results in just weeks are likely lying to you and are just out to get your money.
These are just some of the things that a legitimate credit repair company can’t do and should be doing for you. Remember, it’s important that you research for a credit repair company first before you engage and do business with them.
The Best Credit Repair Company You Can Approach
Now that you are aware why you would need the services of a credit repair company and what you can expect from them and what they can’t do, it is time to discuss the best credit repair company that can help fix your bad credit.
- Lexington Law – When it comes to credit repair, Lexington Law is probably one of the top, if not the top choice for many people. The company has been in this industry for over 26 years and has a track record of great results, which ensures you that you will be getting your money worth if you hire them. Lexington Law also has a personal case representative, which means you will only be speaking with the same person or persons each time you call them. Their services are also on a month-to-month basis, which allows you to cancel anytime. As for the pricing, they are a bit pricier as their most basic service, the Concord Standard will cost you $89.95 a month. This plan includes the fundamental credit repair like challenging the Bureau’s report and creditor interventions. There are also no hidden fees here, as the company only charges for the work they have conducted for you.
- Sky Blue Credit Repair – Another top credit repair company that you can approach to help fix your bad credit is Sky Blue Credit Repair, especially if customer service and monetary value are what you are looking for. The company offers one of the most affordable credit repair service at $69 a month. This service will have the basics of credit repair, including 15 items that you can dispute in your credit report (5 items per credit reporting agency) every 35 days. The company is also known for providing one of the best customer services in the industry and their initial review will sometimes also be able to reveal if the customer is better off fixing the problem themselves or getting the help of a credit repair company. Sky Blue Credit Repair, though, doesn’t have any fancy offerings or offer added services that some of the credit repair company have. But you can be assured that they can get the job done and help repair your credit score.
- CreditRepair.com – The third best credit repair company that you can approach to help fix your credit report is CreditRepair.com. They are actually one of the most popular credit repair companies you will hear about. The company has been in the industry for more than 20 years and they have one of the most interesting offers when it comes to added service. Their cheapest service is worth $49.95 and includes the basics of credit repair, which includes challenges to credit bureaus and interventions. But their most popular package is worth $99.95, as this already includes a lot of their fancy add-ons, which includes credit report monitoring and protection from identity theft. The beauty about their credit report monitoring is that you can your credit score in real time, which means they can provide you with the latest and most up to date credit score you have. One of the downsides of CreditRepair.com is that they are one of the expensive credit repair companies you can find. Yes, they have a low-budget option, but that doesn’t include any of their special add-ons, so you will really need to shell out money if you want everything they can offer.
- The Credit People – If you are not sure if a credit repair company is something you will really need, then you can try The Credit People as they are offering a 7–day trial for only $39 before you need to pay the full price of $89. The company also has a 60-day 100% money back guarantee and an option to pay full price up front if you don’t worry about settling the payment fee monthly. The Credit People has a 6-month option of $479 so you can enjoy their service for 6 months without worrying to pay them monthly. You also have the option of choosing only a single contact person in the company or a customer service team. The services they offer, though, is a bit similar to Sky Blue Credit Repair, in that it is very straightforward and doesn’t have any of the fancy add-ons and special services that a lot of other credit repair companies are offering.
- Ovation Credit – The fifth best credit repair company you can talk to, and probably one of the most affordable you can find, is Ovation Credit. The company only charges $59 a month for its credit repair service, which includes all of the basics and necessities needed to help repair your bad credit scores like dispute resolution, direct submission to credit bureaus, and more. The company also provides a dedicated personal case advisor per client, allowing you to talk to only one person every time you contact Ovation Credit. They do offer additional service such as “Fast Track” and “Identity Optimization” but it will cost you an additional $25 fee for each service. The “Fast Track” addition will be very helpful if you are in a hurry to fix your credit score as you will be applying for a loan soon. One of the downsides of Ovation Credit, though, is that you will need to shell out $89 during the first month of availing their service, instead of the $59. It is only during the following month will the $59 per month fee will start to kick off. It is also a downside that the company has additional fees for added services instead of just including it in the overall package.
The Bottom Line
Having bad credit is really an unfortunate situation to be in, especially if you will be in need of some form of financing real soon. This is because, not only will it be harder for you to get an approval for a loan, but you will also likely have to pay more in interest rates and fees in order to get an approval.
This is why some people opt to have their credit score be improved first before they apply for any form of financing so they don’t have to deal with very high interest rates and bad loan terms. You can fix your credit score on your own, but it will take some time and effort on your part. If you don’t have the time and desire to do it on your own, then you can get the help of credit repair companies.
There are many credit repair companies available out there, but it’s important to remember that not all of them will have your best interest at heart. Some are just out to scam you and not really do anything to fix your credit score. It’s important that you first do your research, so you will only be dealing with the best and legitimate credit repair companies. The 5 mentioned in this article are 5 of the best credit repair companies you can find. You can use them as your starting point in your research.