Disclaimer: This post contains references to products from one or more of our advertisers. We may receive compensation (at no cost to you) when you click on links to those products. Read our Disclaimer Policy for more information.
What is Credit Restoration? How Does It Work?
If you have a low credit score and tried every trick in the book to fix it, you may wonder if credit restoration is right for you.
While there are shady services out there, some services are legit and help you get on the road to credit score recovery.
Here’s how to tell.
What is Credit Restoration?
Credit restoration is just what it sounds like, a way to restore your credit.
But, it’s not a magic pill, and it doesn’t happen overnight. It takes hard work, dedication, and something you can’t control – time.
With the right effort and diligence, you can restore your credit to a better score. But first, you must know the tricks.
Learn More: How to Repair Your Credit Repair
How Does Credit Restoration Work?
Credit restoration combines multiple steps, each of which boosts your credit score. Some of it you can do yourself. Other steps you may need the help of a professional credit repair company.
Choose the tips that pertain to your situation and restore your credit.
6 Credit Restoration Tips
#1. Make on Time Payments
Your payment history makes up the largest portion of your credit score. If you have late payments, bring them current. The quicker you do this, the faster your credit score will increase. This is one of the easiest and fastest ways to restore your credit.
#2. Lower Your Credit Utilization
Your credit utilization rate is the next largest portion of your credit score. It’s the percentage of your credit line that’s outstanding. For best results, don’t have over 30 percent of your credit line outstanding.
This means for every $1,000; you shouldn’t have more than $300 charged. If your utilization rate is high, pay your debts down and watch your credit score improve.
Learn More: How to Lower Your Credit Utilization
#3. Remove Errors from Your Credit Reports
Errors happen all the time. The creditor may report your account wrong, or the credit bureau may report it wrong. Some accounts or errors may not even be your fault – if you were a victim of identity theft, there might be accounts on your report that don’t belong to you.
Go over your credit report and dispute any errors or inaccurate information. Write to the appropriate agency or all three if the errors show up on multiple reports.
#4. Use a Credit Repair Company
If disputing your incorrect or inaccurate information is too overwhelming for you or you want a professional to look over your report, check out one of the following credit repair companies.
Credit Saint is a top-rated credit repair agency with a 90-day money-back guarantee, great customer service, and transparent pricing. They make credit repair and disputes painless.
Learn More: Credit Saint Review
Sky Blue Credit
Sky Blue has one price for all customers and will dispute 15 items per month on your behalf. They offer customized services rather than a one-size-fits-all approach to disputing credit errors.
Learn More: Sky Blue Credit Review
Lexington Law is a group of attorneys and paralegals working on your behalf to dispute your credit errors. They are skilled and professional in their disputes and are great for complex cases.
#5. Try Experian Boost
If you need a little credit ‘boost,’ try Experian Boost which reports timely payments of your cable, utilities, and Netflix bill.
If you pay these bills on time, Experian gives you the ‘credit’ for them, by reporting the timely payments. The on-time payments increase your score without paying for credit repair services.
Learn More: Experian Boost Review
#6. Become an Authorized User
If you have a close friend or family member with good credit, ask to be an authorized user on their credit card accounts.
You don’t have to use the card; you just need to be listed on it. If it’s a company that reports authorized users to the credit bureaus, you get good credit without using the card.
Are Credit Restoration Services Legit?
Credit restoration services are legit when they operate within the law. They can’t do anything you can’t do to fix your credit, but sometimes you need that extra support to do the job.
Any company that promises to increase your score overnight or erase all negative credit isn’t legit, though. Make sure you work with a company with a positive history of helping people legally.
Bottom Line: What Is Credit Restoration?
If you’ve tried fixing your credit to no avail, a credit restoration service may help. You’ll still play a role in improving your credit score by making your payments on time and watching what you charge, but if you have support along the way, it makes the process that much easier.