credit fixing services promise to clean up your credit by disputing errors in your report with the credit bureaus and negotiating with creditors to get negative information off your reports. The truth is, these companies are not doing anything you couldn’t do yourself with a little research and time. The best credit repair services focus on disputing inaccurate information in your report, and some offer additional services like helping you create a budget and develop a plan for paying off debt to improve your credit score in the long run.
Credit repair agencies may charge fees of up to $100 or more per month. They usually start with a first-work fee, which is used to set up your account, gather personal and financial information and create a strategy for your situation. After that, they will work to dispute inaccurate information on your credit report with the credit bureaus and credit furnishers. They will also negotiate with your creditors to have negative information removed from your report or to reduce the amount you owe.
It is important to know what to look for in a good credit repair service, and the most important factor is a money-back guarantee. Most reputable credit repair agencies will offer a money-back guarantee for the first 90 days of your subscription, and some will refund your last month’s payment as well. Some will also offer a discount for couples, active-duty military members, veterans and seniors.
Some credit repair agencies will try to take advantage of consumers who are desperate for help, offering to remove incorrect information from their reports for a fee. Some even use tactics like filing a lawsuit against the consumer to scare them into paying a fee, but this can be expensive and does not always succeed. Using a credit repair service that offers these tactics is a red flag and should be avoided.
In some cases, credit repair companies will try to circumvent the law by creating a new credit identity for their clients. This is done by creating an Internal Revenue Service Employer Identification Number (EIN) for them and then asking the credit bureaus to report the EIN as their official identity rather than their Social Security number. This is illegal and has been known to have devastating consequences for consumers.
The key to finding a reputable and trustworthy credit repair agency is to find one that understands your unique situation. They should be able to customize their services to meet your specific needs and provide you with the best possible outcomes for your credit. The best credit repair companies will also communicate with you throughout the process and keep you updated on any progress they make on your behalf.
A good credit repair agency should be able to identify and correct errors in your report quickly and efficiently. They will also be able to guide you in creating a budget and developing a plan for reducing your debt, as well as educating you on the best practices for maintaining a healthy credit score in the future.