Credit Repair Companies: Explained

by Bounnie Miller Content Writter

Lately, many Americans have become unemployed in the wake of the corona virus pandemic.  As a result, consumers with otherwise good credit, student loans, personal loans, credit cards, and other accounts resulting in negative items being posted to their credit reports at the major credit reporting agencies (Equinox, Experience, and Trans union) resulting in bad credit. 

Many consumers will seek DIY options as a way of restoring their own credit.   If you choose to go this route, you can obtain a copy of your credit report at annualcreditreport.com to help you discover where you stand. However, there are many great credit repair companies who can assist you with removing negative items from your credit report and improve your credit history.  Please understand that credit repair takes time and no matter which route you take, it will not be an overnight solution.

What Can a Credit Repair Company Do for Me?

In essence, a credit repair service will review your credit report and credit score with you and then begin working on your behalf, disputing inaccuracies and negative information on your credit report such as late payments, charge-offs, bankruptcies, and other negative items in your credit file at the major credit bureaus.

The credit repair company will typically charge a monthly fee or other payment arrangement such as a multi-month flat fee in exchange for their services.

How Can I Find the Best Credit Repair Companies?

I'm sure we've all heard of credit repair companies that don't seem to be much more than credit repair scams.  They make lofty promises or engage in shady or illegal practices, such as making guarantees that you can have a perfect 850 FICO score or a brand-new credit profile.

You can avoid credit repair scams by checking with agencies like the Federal Trade Commission (FTC) or the Better Business Bureau (BBB) to find reviews and complaints related to specific credit repair agencies.  You should look for credit reporting companies with an A+ rating.

Who Are Some Reputable Credit Repair Companies?

The best credit repair companies have a good understanding of the Credit Repair Organizations Act (CROA) and will use best practices as outlined to help you re-establish your good credit.

According to the Credit Repair Organizations Act, credit repair companies must provide you with a written contract that outlines the terms of their service.  Look for items such as how they will process dispute letters, handle your personal information, and receive payments.

You should also consider whether they offer a free consultation before you sign up and if there is any sort of money-back guarantee should you be unhappy with the credit repair service.

Credit repair services that offer these types of incentives are far less likely to be a scam.

There are hundreds of credit repair companies out there.  We'll mention just a few of them that you may want to consider as alternatives.

BuildWorthStrategies.com

Largely considered the next big disruptor in credit repair, BWS (founded by Justo Villalobos) aims to provide individuals with personalized attention that values financial freedom. As a comprehensive team, BWS wants to establish awareness surrounding credit consumer rights, creditor’s rules, regulations, credit reporting agencies, and the disputing process. Expect REAL personal attention and many times working directly with the owner to stay informed and get your credit fixed.

Lexington Law

Lexington Law is a national credit repair service and has been around for nearly 20 years.  They are run by attorneys who have extensive expertise in credit law issues.  They offer a free credit report consultation to help you get started.

Sky Blue Credit

Sky Blue Credit has been offering its credit repair services since 1989.  They offer a flat monthly price upfront, making it easy to budget.  You can sign up for their services online and they also include an FAQs section to help answer all of your questions.

Credit Saint

Credit Saint is a credit repair service based out of New Jersey helping clients with poor credit get back on track.  They are BBB accredited and offer a 90-day money back guarantee.

In addition, you can receive a free credit report consultation before you get started and they have an FAQs section to help you to better understand the credit repair process and its impact on your credit history.

Ovation Credit Services

Ovation Credit Services has an A+ rating with the Better Business Bureau.  They offer credit repair services including assistance with credit monitoring and credit education where you can learn more about your credit report and how the credit bureaus operate.

 Their credit counselors can be reached online and at the phone number provided on the company website.

The Credit People

The Credit People have been around for over 15 years assisting clients in achieving better credit.  They are a Certified Fair Credit Reporting Act company and work to help their clients understand their legal rights when it comes to credit repair.  They provide their clients with free credit reports and credit scores and offer and money back guarantee.

Your credit score is an important part of your personal finance profile.  Bad credit will prevent you from receiving favorable terms, meaning higher interest rates on loans and credit cards costing you more of your hard-earned money over time.

There are lots of options when repairing your credit report  at the major credit bureaus from DIY to working with a credit repair company.  If you have any questions about how the credit repair process works, credit issues such as identity theft, bankruptcy, or a late payment history, or you would like to learn more about our services, please feel free to contact us for more information.

Sponsor Ads

• Ad Space Available - Rent it Now!

Created on Sep 11th 2020 01:27. Viewed 375 times.

Comments