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Around the United States, consumers are dying to know if credit repair companies really work. Here is the truth.
For years, the best credit repair companies have helped millions of consumers clean up their credit report, rebuild their credit, and educated them on how impactful your credit score is on the rest of your life.
Your credit score is the most powerful numeric metric in your life. It sets your interest rate, dictates whether you can rent an apartment, apply for a credit card, and so much more. A good credit score is key to living the financial life you deserve – one that isn’t debt-ridden.
Before we get into the nitty-gritty details, we need to set some expectations though about credit repair.
Understanding Credit Repair
A credit repair expert can’t magically increase your credit score. What they do bring though is years of experience, unparalleled knowledge of your consumer rights, and candid advice on what steps you should take to repair your credit.
Apart from inaccurate information, they can also help you remove negative items from your credit report. Here is a complete list:
To do this, they will file disputes with all three credit bureaus. This process is labor intensive and is easy to mess up, which is why hiring a credit repair company makes sense.
Whether a credit repair company works or not depends on your unique credit situation. If you have items that can be removed, then credit repair will work; however, if you do not, then it will not.
Ultimately, credit repair companies can only do things that you can do yourself. This is the main misconception that circles around credit repair. Their capabilities are also yours if you are willing to do the research, put in the time, and interact with your debt collector and or the credit bureaus.
If you prefer a more “do it yourself” approach, then check out our guide here. Additionally, the Federal Trade Commission (FTC) published a guide on the steps you need to take if you discover an error on your credit report.
Hiring a Credit Repair Company
It is easy to hire a credit repair company. Simply review our list here. We did the work for you and found legit credit repair companies that can help you improve your credit score. With that said, you need to be wary of scams.
Credit Saint is our top choice. They are affordable, transparent, and have years of experience to back up their top-notch results.
Read: Credit Saint Review
Watch Out for Scams
Hiring a credit repair company is straightforward and easy. However, you need to be aware of scams that are out there. Legitimate credit repair companies will not:
- Make You Pay Upfront: This illegal and not allowed under the Credit Repair Organization Act (CROA). Credit repair firms charge a monthly fee.
- Make Promises: This is also illegal. Credit repair companies cannot promise you drastic credit score increases or immediate results. Credit repair is a long, arduous process that takes time.
- Remove Accurate Items: Credit repair scams will often suggest for you to remove accurate items on your credit report. This is illegal and punishable under law.
- Do Things You Can’t Do: Like we said, you can do everything that a credit repair does. So, if someone is telling you, they are the only ones who can repair your credit, they are dead wrong.
- Doesn’t Disclose Your Consumer Rights: This is another thing a scam artist will hide from you, which is illegal. Credit repair firms must disclose your rights. It needs to be front and center.
- Impose a Cancellation Fee: Yes, you guessed it. Legitimate credit repair companies cannot charge you if you cancel your monthly subscription. This is grossly illegal under the United States Consumer protection laws.
There are more things a credit repair scam will try do, but these are the big no, no’s.
So, let’s address the elephant in the room.
Do Credit Repair Companies Really Work?
To put simply, yes. Credit repair companies really do work. Just make sure you understand what they can and can’t do. If you want an expert to take the matter into their own hands, then working with a credit repair company makes sense.
5 Reasons Why We Love Hiring an Expert
To help you make a decision, here are five quick reasons why we love hiring a credit repair expert.
- They Bring Experience to the Table
- They know Your Consumer Rights
- They Repair Credit Daily
- Will Teach You Good Credit Habits
- Potentially Improve Your Credit Score
There are so many reasons to hire a credit repair company, but these are what we value.
Credit repair companies work. But they can only do things you can do yourself, so take that with a grain of salt.
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