All thanks to your credit score, credit history, and credit report; you can be denied a loan or have your card rejected. Trust me that can be very embarrassing. So what can be done to fix all of that if not to repair your credit?
This post contains some of the best credit repair companies to remedy your credit score. Read on to find out more!
What Is Credit Repair?
Credit repair is a way of fixing poor credit standing that has deteriorated for some reason. The process is similar to resolving a dispute, only on a financial scale. It involves repairing credit issues such as misinformation, identity theft, budgeting, etc.
How Does Credit Repair Work?
You can repair the damage to your credit on your own or by involving a third party (credit Repair Company). Involving a credit repair company is the most feasible option. Although most of these companies have known are known to clean up credit, however, how they do it is at their discretion.
In other words, one cannot truly say how they repair credits, but they do it. The simplest explanation is that; these companies get contracted for repair.
Repairing your credit on your own is tedious work. It may take up to months to completely rectify it.
How Do I Know I Have Bad Credit?
There are signs your credit needs a repair. They include;
Your Loan Application Gets Denied
Not every time will your loan provider deny you a loan. That can only happen if you have bad credit. Loan providers will give out money to those with good credit. So if your request for a loan gets denied, it means you need credit repair.
When Your Credit Provider Won’t Lower Your APR Or Increase Your Limit
Your APR and credit limit are determined by your credit score and report. If your credit provider is adamant about increasing your limit or reducing your APR, check your report. Chances are that you have bad credit, hence in need of a repair.
When Your Card Is Closed
Your loan issuer may close your credit card if after a review you have bad credit. Also, they are likely to change the terms and conditions of the card. If all these happen suddenly, you have a credit in need of repair.
Your Creditor Gives You A Default Notice
Defaulting on your payment will harm your credit score especially if you get reported for the default. If you receive such notice or get contacted about an outstanding loan, it means bad things are happening to your credit. Worse still, your creditor reports you to the agency.
You Are Asked For Down Payment For Utility
The idea of a credit card is for you to have financial access while you pay later. But that is not the case for those with bad credit. They are required to pay a deposit before accessing some utilities like; insurance, phone services, etc.
Your Credit Offers Are For Subprime Borrowers
The loan offers for subprime borrowers are different from those with good credit. They get lower limits, with high interest, and shorter loan periods. If you experience this, it is an indicator of credit that needs repair.
Why Should You Repair Your Credit?
There are reasons why must emphasis is being laid on credit repair. If it were not important, no one will talk about it. But here we are discussing it. Financial institutions and credit bureaus have made it the deciding factor for things like mortgage and insurance. Below are other reasons why you should repair your credit;
To Correct Error In Your Report
The errors in your report may be why your report is saying you have bad credit. When you repair your credit, you correct the errors in your report. You also get to remove some not-so-favorable information. According to the law, you have the right to blotch some history from your report.
To Enjoy Lower Interest Rates
Bad credit comes with a high-interest rate anytime you apply for a loan, provided you will be granted one. The rate keeps going up until you have more interest to pay than the principal amount. Repairing your credit will allow you competitive rates. Hence, help you save money.
To Negotiate Lower Credit Card Interest Rate
Apart from the lower interest rate on your loans, you can also negotiate lower credit card interest with your provider. And in case you don’t have one, it may help you in the process of getting one.
No More Cosigner
In most cases, those with bad credit need a cosigner for their loan to be approved or for them to get a credit card. They are guarantors to your loan, hence the financial pressure will be on them. They will be on the receiving end of the collector’s wrath if you default payment. Invariably, this will put a strain on the relationship you have with them. When you repair your credit, you will not need a cosigner. Your signature will be enough to get the loan approved.
To Become Mortgage Worthy And Rent Properties With Ease
Having a home is part of the American dream. But bad credit wouldn’t let that dream come true. You get turned down when you apply for a loan to buy a house. Even if the loan gets approved, you wouldn’t like the offer. Also when renting an apartment. Your landlord may request your credit report before leasing his property out to you. Credit repair will save you the stress.
To Avoid Utility Deposits
With good credit, you can access utility services without paying a deposit, which cannot be said for bad credit. Most utility services evaluate credit scores before they allow users to sign-up for their services. They view those with bad credit as a risk, hence, will require a deposit. When they make a complete and on-time payment, they refund the deposit. Credit repair will save you from this stress.
To Own A Business Or Car Of Your Own
You need money to get a car or start up a business. Unless you have the means, most Americans depend on loans to do that. But, bad credit will prevent you from these things. Repairing your credit will get you the loan you want to start a business or buy a car.
To Avoid Debt Collection Harassment
Nobody wants to be in such a situation, but debt collectors harass borrowers when they default in payment. If your account gets sold to such agencies, you’d have to endure the frustration of calls, letters, texts, and emails from the collectors. When you repair your credit, there is a minute chance of getting such harassment.
To Enjoy Higher Credit Limits
In the same way, you enjoy a lower interest rate when you have good credit, you will enjoy higher credit limits too. However, for that to happen, your loan provider will pull your record. Bad credit wouldn’t give you access to a good loan. Hence, you need to repair your credit to get the desired loan limit you want.
To Feel Relieved
Not to sound like a psychologist, but there is a form of peace you get knowing that you have good credit standing. You get the kind of loan you want, have access to utility services even enjoy good insurance rates. No more enduring emails and calls from debt collectors. All these when you repair your credit.
To Boost Your Credit Score
Your credit score determines your financial standing. It is an outcome of your credit report. Without a good credit score, you can’t access certain mortgages or get a credit card. When you repair your credit, you can boost your credit score and enjoy the benefits.
How To Repair Your Credit On Your Own?
Get Your Credit Report
The first thing to do when self-repairing your credit is to ask for a copy of your report. According to law experts, you have the right to do that. When you get the report, you can detect what is wrong. It may be identity theft, incorrect information, or a default in payment.
Review Your Credit Report
Your credit report contains your past and present information. When you requested a credit card and make purchases with it, you were asked for your address and other personal information. Check if this information is wrongly input; chances are that they are.
Repair The Report
Repairing your report involves correcting the misinformation on it and removing what needs to be removed. Like some history, you don’t want to reflect.
Why Choose A Credit Repair Company?
They Are Experienced
You on your own can repair your credit. There are online resources to help you. But one thing is missing; you do not know the laws guiding report. If you know the fair credit reporting acts law and the fair collections law, you can use them to your advantage. Also, you may not know how each item in your report affects your report. But these companies know that. That is why you need to recruit their help. They’re in the business. They know tricks and shortcut to get the job done.
It Saves You Time
If you are honest with yourself, there are things you’d rather do than pour through pages of a report with hopes of correcting it. There are chores to do, kids to attend to, not to mention your 9-5 job. You don’t have the time for self-credit repair. This is where the credit repair company comes into play. There has been a large demand for these companies by those with bad credit. The repair process is lengthy, and you may not have the patience for it. But these companies are up-to-date with the protocol and can help you achieve your goal.
It Saves You Lots Of Money
If you want to repair your report yourself, you will have to hire a lawyer for a consultation. Seeing as your credit is bad, you barely have enough till your next paycheck, not to talk of hiring a lawyer. Unlike hiring a credit repair company, the overall cost of self-repair is more than that. Plus there is no guarantee that you’d make a headway.
These Companies Have A Lot Of Resources
The resource is the major reason why you should hire a credit repair company. They have both legal and human resources to handle the repair process effectively. You as an individual without any means, how do you hope to accomplish the task on your own? You should hire a credit repair company.
How To Choose The Best Credit Repair Companies?
Choosing a credit repair company is no mall decision. If things go south, you’d not only lose money; but also be denied the repair. Plus, you may get into legal trouble if the company you choose is fraudulent. So, how do you choose the best credit repair companies?
The Company’s Experience
No doubt, you may find newbies companies with top-notch services. But do you want to take your chances with them? It is ideal to choose a company that has been in the business for a long time, with enough reviews from customers. Such companies know all the perks of credit repair and they know what they are doing. Otherwise, they would have closed down already.
The Companies Rating
The most highly esteemed business in America has good ratings from the better business bureau. They give accurate reviews not the cherry-picked ones. If the repair company falls into this category, then you are free to consult them. The better business bureau takes their time to evaluate and validate the business. Also, if customers have any issues with the company, they can file a complaint against them through the bureau.
Cost-Effective Service Fee
The major reason why you want to have your credit repaired is to access a better loan. If the company charges more than reasonable, seek an alternative. Also, beware of those that charge per item. You may think they are been considerate. What till they charge per item per credit bureau.
Ensure The Company Is A FICO Expert
Only FICO certified credit expert knows how to deal with a FICO credit score. Also, speak to the expert assigned to your case to know their approach. Usually, most companies do not give out this information, but they will be willing to give you an idea.
Know What You Want to be Repaired
Before choosing any credit repair company, you need to know where the fault lies with your credit. Most Americans do not know that they have bad credit until they are been denied a credit card. Order a copy of your credit report to know where the fault is.
Be Careful Of Fraudsters
Be wary of any repair company that seems too good to be true. Avoid companies that charge you before any work is done. You can only pay upfront for administration and down payment for the services. Ensure that the company is transparent enough with the price breakdown. Lastly, avoid companies that guarantee 100% success. That is not true. The best you can get is a 90% success.
9 Best Credit Repair Companies In 2024
1. Ovation Credit Services
Ovation is a 45 years old credit repair company. That is a whole lot of experience. Its repair packages are cost-effective and range from $79-$109 per month. The $79 is for the essential package while the $109 is for the essential plus package. However, both packages require a one-time startup fee of $89. Ovation offers free consultation and discounts; there is also a refund policy.
2. Sky Blue Credit
Sky Blue Credit has been around for 30 years now. It offers just a single package of $79 monthly with a $79 set-up fee. The package contains everything the customer wants to find. Couples enjoy a 50% discount on both the package and setup fee. It has a three-month money-back policy and customers can cancel with no extra charge. But it does not offer credit monitoring.
3. Credit Saint
Credit Saint is backed by other reputable industries. They’ve been in the business for 17 years. They offer free consultations. Customers are entitled to three packages; credit polish ($79.99), credit remodel ($99.9), and clean-slate ($119.99). The first package does not contain credit monitoring. There is a three-month money-back guarantee.
4. The Credit Pro
The Credit Pro has 12 years of field experience in credit repair. There are three repair packages from $119-$149 monthly with a $69-$149 setup fee. The money management package goes for $119; the prosperity package goes for $119 too but with a $119 setup fee. The success package cost $149 with a $149 set-up fee. They offer free consultations to customers and free credit monitoring. There is also a 90-day money-back refund policy if there is no deletion from the credit bureau.
5. The Credit People
The Credit People have been around for eleven years. It offers two types of packages to their customers; month membership and flat-rate membership that ranges between $79-$419 monthly. Month membership comes with a $19 setup fee. You can opt-out of the package at any time without any charge. Also, it guarantees six-month satisfaction to its flat-rate customers.
6. AMB Credit Consultant
AMB Credit Consultant has been around for 15 years. It is a credit repair company that doubles as an empowerment center. They help their customers identify and correct negative attitudes that lead to bad credit initially. It offers two packages; credit empowerment individual and credit empowerment couple. The fee ranges from $99-to $198 each month. The setup fee is $149-$198. It has a refund policy if nothing is being removed from the report within six months.
7. Lexington Law
Lexington Law has 15years of experience as a credit repair company. It focuses on credit score analysis and monitoring, credit report analysis, and credit escalating. They have three packages ranging from $89.95-$129.95 monthly with zero set-up fee. They also offer a 50% discount to first-time customers who are in the military.
8. Creditrepair.com
Although the company has been around for only nine years, it has more reviews. Customers can enjoy any of the three Creditrepair.com packages; Starting from $69.95-$119.95. All packages come with credit monitoring. It requires a set-up fee of $69.95-$119.95, the same as the package cost.
9. Creditfirm.net
Creditfirm.net is a 24-hours-seven-days-a-week credit repair company. It offers customers unlimited disputes at a low monthly fee of $49.99. Customers can cancel the service at any time. It does not offer credit monitoring but it has free consultation.
How To Maintain A Good Credit Report?
After repairing your credit, you should try to maintain it. Here are some tips;
Pay Your Bills Early
The main culprit of bad credit is a default in payment. 35% of your credit score is your payment history. That’s no small percentage. Endeavor to pay your bills in full and in time. Even the tiniest of bills may reflect on your credit history.
Keep Your Balance Low
Your credit utilization rate is determined by your balance and credit limit; it makes up 30% of your score. Try to keep your balance as low as possible. It will keep your credit utilization low. Think of having a balance of $500 when your limit is $10,000. That 5% utilization rate.
Keep Your Account Open
Even if you are done with credit, which is kind of hard, you should still keep your account open. Your credit history is 15% of your score. So once in a while, be sure to use the card. It will keep the card active and the account open.
Bottom Line
Your credit report speaks volumes about your creditworthiness, so also your credit score. There are benefits attached to having a good credit report. If you have poor credit, hire a credit repair company to rectify the issue. But do not forget to do your research on them before hiring.
