How much does it cost to repair my credit?

In this article, we will address the topic of credit repair costs. We will explain what credit repair is and how it can help improve your credit. We will also discuss the costs of using a credit repair company and how to find a reliable company in this field. Finally, we will review some alternatives to paying for credit repair services.

What is Credit Repair?

The Fair Credit Reporting Act gives you the right to an accurate credit report, allowing you the ability to dispute information on your credit report that is inaccurate, incomplete, or unverifiable. Credit repair is the process of removing this type of information from your credit report with the goal of improving your credit. Credit repair companies dispute information on your behalf.

How Can Credit Repair Help Improve Your Credit?

Credit repair helps improve your credit by removing negative items that affect it and are inaccurate. For example, a falsely reported 90-day late payment can decrease your credit score by 100 points. While you have the right to dispute credit report information with the credit bureaus yourself, working with them isn’t always easy.

How Much Do Credit Repair Companies Charge?

Legally, credit repair companies cannot charge fees until after services have been provided to you. You will find that many credit repair companies charge monthly subscription fees to cover the costs of work done for you in the previous month.

Your total credit repair cost will vary depending on the company you choose and the length of your enrollment. To give you an idea of costs, here are the fees charged by some credit repair companies:

Credit Repair Company Setup/Enrollment Fees Monthly Fees

Ovation by Lending Tree $89 initial work fee $79-$109

Sky Blue Credit $79 $79

The Credit Pros $119-$149 $69-$149

AMB Credit Consultants $149 (individual) $198 (couple) $99 (individual) $198 (couple)

Do not evaluate credit repair companies solely based on cost. Look at the services you receive for the price, the money-back guarantee, and results from other customers.

Once your credit improves, you may not want to remain enrolled in the credit repair program. See if the service they provide is still worth the cost, or whether a free credit evaluation service better suits your needs.

How to Find a Reliable Credit Repair Company

While some credit repair companies use illegal tactics, such as providing trade lines or credit privacy numbers (a nine-digit number formatted like a Social Security number), there are also reputable companies that adhere to the law to achieve results.

Look for signs that the company is legitimate. Credit repair companies must comply with the Credit Repair Organizations Act, which requires them to inform you of your right to repair your credit, prohibits them from charging upfront fees, and gives you the ability to cancel your contract within three business days. Any company that does not follow this protocol is one to avoid. A professional website that contains comprehensive information about services and prices, a business address, and a customer service number is also something to look for.

Before choosing a company, compare plan details, online reviews, and complaints with the Better Business Bureau against other credit repair companies. Check to see which ones offer a legitimate guarantee. It’s best to trust a company willing to refund fees if they do not deliver results.

Alternatives

To Pay for Credit Repair Costs

If you don’t have a budget for credit repair, or you prefer to spend that money paying down high balances, you can repair your credit yourself. Many consumer advocacy groups advise against using credit repair companies due to the number of unscrupulous individuals in this industry.

“Most credit repair companies are scams. Do it yourself for free instead. And if the credit bureau fails to correct an error, file a complaint with the Consumer Financial Protection Bureau or contact an attorney,” wrote Andrew Pizar, an attorney with the National Consumer Law Center, in an email to The Balance.

If you choose to do it yourself:

• Start by getting copies of your credit reports from all three credit bureaus: Equifax, Experian, and TransUnion.
• Carefully review your credit reports and look for any inaccurate information.
• Dispute the inaccurate information by writing to the credit bureaus and providing any evidence you have to support your dispute.
• The credit bureau will investigate your dispute and update your credit report based on the findings.

The do-it-yourself method is less costly, but be prepared to cover mailing costs and the time it may take to send and track disputes.

Working with a nonprofit agency to guide consumers in credit matters is another option worth considering and is cost-effective. The agency can help you review your financial situation, set a budget, and negotiate with your creditors to create a debt management plan to help you catch up on any overdue bills. You can find a reliable agency through the National Foundation for Credit Counseling.

Source: https://www.thebalancemoney.com/how-much-does-it-cost-to-repair-my-credit-5088510