Credit Restoration
Typically, credit repair companies charge a monthly fee for reviewing and disputing errors on your credit report. These can include inaccurate information such as a past due account, collections accounts or even criminal records that should not be on your report. The Fair Credit Reporting Act gives you the right to dispute such information, and credit bureaus are required to investigate your dispute within 30 days of receiving it. A reputable credit repair company will be willing to work on your behalf with creditors and the credit bureaus to get inaccurate items off of your report. This can save you time and hassle, but it’s important to note that credit repair companies do not have any magical powers and cannot remove legitimate negative items from your report.
Credit repair services can help if you are facing challenges such as bankruptcy, debt collection lawsuits or other legal action. These issues can negatively affect your credit score and make it difficult to obtain loans or new credit cards. Many credit repair companies specialize in helping consumers deal with these issues, and they can help you negotiate payment plans with creditors or work to clear your record of a legal dispute with the credit bureaus.
In addition to these services, many Credit Restoration companies offer educational tools and resources that can help you learn how to improve your credit on your own. These can include a FICO score tracker, identity theft protection tools and personal finance tools that teach you how to keep your credit in good shape. Some of these tools can be found online, while others are available through the credit repair company itself.
What Are the Fees Associated With Credit Restoration Services?
To find a credit repair service that meets your needs, look at the list of recommended providers on our site. These companies have been vetted by our editorial team, and all of them adhere to the Credit Repair Organizations Act. In addition, look at the company’s website and customer reviews to find out what other consumers have experienced with it. You can also check the CFPB complaint database to see complaints that have been filed against a company.
If you are interested in working with a credit repair company, be sure to compare fees. The most reputable companies will have upfront costs and monthly fees that are clearly outlined on their websites. Some may even offer discounts for active-duty military, veterans and seniors.
If you are still unsure about whether to use a credit repair company, be aware that it can take up to several months for a service provider to remove inaccuracies from your credit report. The amount of work required to clean up your report will also determine how much you should expect to pay. Be wary of any company that claims it can guarantee your credit score will increase, asks for payment upfront or advises you to contact the credit bureaus directly (this is against the law). You can also look for a company that offers a money-back guarantee in the event that mistakes on your report cannot be removed.