Ultimate Guide to Credit Repair Services and Fixing Bad Credit

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Do you have bad credit? This article explains how to fix bad credit and how the best credit repair services can help.

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Ranking of top credit repair services
How credit repair services work
Steps to repair bad credit
Pros and cons

Before making a significant purchase, you need to inspect your credit report so you will know about your credit history and so you can check to make certain it is accurate. Just one blemish on your credit report can have a considerable negative impact on interest rates or loan approval. Knowing about your debt to credit ratio, payment history, and accounts can help you prepare for acquiring new debt.

If you have had problems with your credit history, you may want to try to fix your credit rating by using the service of a credit repair agency. They will work to get your credit history cleaned up, and get delinquencies, charge offs and excessive debts removed from your report and out of the view of potential creditors.

Credit repair services can improve your credit enough to lower interest rates, which in turn, can save you thousands of dollars on a loan. When making a significant purchase, such as buying a home, it is important to make sure your credit rating is at its best in order to get the best rate and terms possible.

Credit Repair Services

There are multiple credit repair services available to help you fix your credit woes. A credit repair service will look over your credit report and then dispute anything that you may believe is not accurate. While some credit repair services make false claims, there are legitimate firms that will work to improve your credit and make an amazing difference in your overall credit rating. The legitimate operations know how to take care of business and get satisfactory results.

Many of the credit repair services have extremely high success rates. Before selecting a company to work with, check Better Business Bureau records and other agencies that maintain consumer reviews regarding services. Also consider what services are included in the price and what services will meet your personal needs.

How Credit Repair Services Work

Legitimate credit repair agencies will tell you that they can not guarantee that they will improve your credit score by leaps and bounds. Those credit repair services that have been around for a while and that operate honestly know how to navigate the rules, what loopholes to look for and how to approach your credit issues so they can work to get your credit rating upgraded.

There are federal laws that are designed to protect the consumer. If a creditor violates these federal laws, they have a limited time to correct the error on the report or they could be required to pay you $1,000 for damages. The Fair Credit Reporting Act (FCRA) works to protect the rights of the consumers from improper and illegal collection practices.

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Steps to Fixing Bad Credit

Here are the steps required:

1. Dispute any questionable credit entry that is on your credit report. If you are not familiar with the debt, or if you dispute the information that is provided, then dispute the results.

2. If they verify the item that you have disputed on the report, get your copy of the report and call the credit bureau using their toll-free number.

3. Using the reference number from the credit report, ask the credit bureau how they verified the entry and ensure they used a method of verification as instructed in FCRA Section 611(a)(7). If they did not use the entry that the law requires, you can dispute it farther.

4. Most often, credit bureaus use an online program that automates the verification process. If they cannot
provide you with solid proof that they actually made a phone call to the original creditor, ask for the phone number of the original creditor so you can contact them yourself.

5. For the next step, call the original creditor and ask them to provide you with a copy of your records. If the original creditor indicates that they have no records, call the credit bureau and inform them of the name of the representative you spoke with, the number you called and that the original creditor has indicated that they have no records. At that point, you can open another dispute.

6. If the original creditor tells you that the collection agency holds the records pertaining to the debt, ask for the number for collection agency and call the creditor directly asking for the records under the new FACTA Act. When you get those records, immediately look them over to check for inaccuracies. If the records do not prove that the negative entry belongs on your credit report, call the credit bureau and ask to open another dispute, providing them with a copy of the report to assist in your dispute.

7. If the credit bureau includes a negative item for more than 7 years, which is the statute of limitations on your credit report, they are violating the FCRPA. In the event of such a violation, the consumer could be entitled to $1,000 in damages plus legal expenses. Delinquent debt must be removed from the credit report as soon as the statute of limitations has passed.

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Our Picks for the Top Credit Repair Services

Here are the top 15 credit repair services out of the hundreds currently available. These services are included on the list based on effectiveness, cost, and their guarantee. That means that they all have a successful track record when it comes to improving credit ratings, their fees are affordable and you get your money’s worth, and they are known to back up their services with a refund policy.

Lexington Law

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With a half million customers, Lexington Law has been credited with removing 2.5 million inaccuracies from credit reports each year. Setup fee of $99 then a monthly charge based on the level of service, ranging from $39.95 to $79.95.

Sky Blue Credit

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For more than 20 years, Sky Blue Credit has worked to dispute credit issues and rebuild credit ratings. They have a policy where they will give unhappy customers a full refund with no questions asked. Setup fee $49 with a monthly fee of $49.

Credit Repair

They fix credit without requiring contracts and by not charging any hidden fees. They provide educational services and tools that are customer friendly. Charge of $12.99 for credit reports then $89.95 monthly.

The Credit People

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For one set charge, you get unlimited credit repair services. Clients are also given a six-month full-refund policy. Flat fee of $316.

Ovation Credit Report Repair

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Before enrolling, you will get a free credit consultation. Clients get easy online access so they can see all their credit repair information whenever they wish. Initial fee of $87 then $37 to $57 per month.

Credit Firm

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With a flat monthly fee, they take care of everything you need to do to improve your credit score. They also have a positive rating with the Better Business Bureau. Fee of $39.95 per month.

Academy Credit

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With the promise to fight for your credit rights, this firm helps the client to evaluate and understand their rights regarding their credit report. They boast a 95% success rate for credit repair with their clients. Pricing varies, with setup ranging from $49.95 to $129 and monthly fees from $9.95 to $69.95.

Veracity Credit

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Honest with clients by telling them credit repair can take some time to get done, they target specific items and try to get them taken care of as quickly as possible. In the end, they make deletions and corrections the top priority rather than focusing on the non-essential items. With a $69 setup and $49 monthly fee or a $99 setup charge and $79 monthly fee they have plan options for various needs.

My Credit Group

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With the promise to give “straightforward and honest” credit repair, My Credit Group has amazing BBB and Chamber of Commerce ratings in San Diego. They give a 100% customer satisfaction guarantee. The setup fee is $99 with a $69 per month charge.

E Credit Attorney

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Working to leave you with a credit report that has no inaccuracies or erroneous information, they work to keep their services low. If satisfactory services are not completed within a year, they will provide a full refund. The setup is only $29 plus a $29 monthly fee.

Credit Repair Consultants

Promising a “no-compromise credit report repair” within the first 120 days of service or providing a partial refund, Credit Repair Consultants works to stand above the competition. A member of the BBB online, they give clients an educational booklet, welcome and orientation communication, and handle ordering all of the credit reports. The firm has a $189 enrollment fee plus a monthly fee of $35 to $65.

National Credit Fixers

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The BBB gives National Credit Fixers an A + rating and consumers have voted the firm the best credit repair company. With an honest, straightforward results, they show their clients results. The signup fee is $199 then six monthly payments of $199 or 12 monthly payments of $149.

180 Credit Solutions

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Offering guaranteed credit restoration, 180 Credit Solutions offers a money back guarantee. Those who are interested in credit repair are given a free credit analysis. Price is based on individual needs.

Trinity Credit Services

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A Christian based debt counseling company, Trinity offers credit restoration and repair, plus they educate their clients. Interested consumers are given a free consultation. Prices are quoted on an individual basis.

The Credit Pros

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A BBB accredited firm, The Credit Pros offer a fast fix for credit repair. Owned by an attorney, the firm has received high recommendation from its clients. First payment of $199 then $99 per month or $119 first payment then $50 per confirmed deletion.

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The Pros

When you choose a credit repair service wisely, you can see a significant difference in your credit rating in a relatively fast timeframe. If you need to fix your credit, you should check with a credit repair service to help you get your finances back on track.

With the help of an experienced, professional credit repair firm, you can improve your credit score by several points. Just one minor problem on your credit report can result in major credit issues. The better your rating, the lower interest rates you would be charged. On a significant purchase, such as a home or a vehicle, lower interest rates can save thousands throughout the years.

Not every item on your credit report that is disputed will be changed, but you will see your credit score increase several points from just one entry being deleted. Credit repair services work hard to make improvements to clients’ credit reports. Look over the options before choosing the credit repair service that best suits your needs.

The Cons

What are some of the negative aspects of hiring a credit repair service? They cannot guarantee that they can fix all of your credit issues. There is a fee involved, and some require an initial registration fee or a startup fee. And, any repairs cannot happen overnight. You have to be ready to wait for them to get their job done.

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In Conclusion

So in conclusion, you can benefit from a credit repair service. If you are planning a major purchase, you may want to seek the help of a credit repair service before making a significant purchase. It is wise to regularly check your credit report to make sure there are no errors or discrepancies on it.