Top 5 credit repair companies
When you are saddled in debts and living in bad credit, it’s likely you’ll be vulnerable.
Poor credit does not only deny you access to affordable loans, it also makes you easy prey to scammers who offer you fake promises.
Most of these promises are just that. If you fall victim to such credit repair agencies, you’ll end up losing cash without achieving much.
To get out of bad credit, you’ll need to fix your credit issues, and it takes some time. If you can’t do it alone and are thinking of hiring credit repair services, it’s important to know which ones are the best and deliver what they promise.
In this guide, you’ll find out how credit repair companies work, some of the benefits and cons of using credit repair companies, how to identify scams, and a review of some of the best credit repair companies to check out.
How credit repair companies work
To help improve your credit scores, a credit repair company will only dispute items and errors, or negotiate and contest legitimate information that can be easily removed from your credit reports.
It is important to note that there is nothing they can do that you cannot. You should also know that if there is negative information on your reports that’s 100% accurate, there is nothing much the repair company can do.
Below is the credit repair process
- The credit repair agency gets your reports from the three credit bureaus Equifax, Experian, and Transunion. They will then professionally analyze it to identify errors and mistakes.
- Dispute these errors with the credit bureaus to have them removed from your report. This step involves presenting documentation that’ll help back up your claims.
- The credit bureaus have 30 days to contact your creditors before responding to your inquiry.
- Once the applications are verified, they’ll be removed from your reports, and you’ll be given a new credit rating.
- These credit repair companies also negotiate with your creditors to remove negative remarks from your file and settle for a comfortable repayment plan that will not deteriorate your credit further.
- Some will also help you identify loopholes that put you in the bad financial situation and give you useful tips on how to get back on the right track.
Benefits of using credit repair services
Repairing your credit has numerous benefits.
If you have a bad credit history and feel it’s time to fix it, hiring a credit repair company will give you the following benefits:
- Saves your time
Credit repair companies work in cohort with your creditors and have machinery in place to get the documentation required in disputing the errors on your reports.
Imagine if you had to go from creditor to creditor looking for these documents, you may end up wasting a lot of time, and not get the work done as fast as you’d like to.
Hiring a credit repair specialist will save you time and headache because these professionals work fast and smart.
- Negotiate with your creditors
Many people feel less confident in negotiating with creditors.
Credit specialists have the expertise to negotiate with your creditors to remove the derogatory remarks from your reports and settle for a repayment plan that you can easily adhere to.
If you feel negotiating with your lenders is a hassle, let the credit repair agencies do it for you.
- Professional services
Most of these credit repair specialists have tons of experience in the credit repair business.
Hiring one gives you the peace that your credit issues are being handled by a professional, and that you’ll get perfect results.
- Faster disputes
Depending on the magnitude of errors and mistakes on your report, most of the reputable credit repair companies take the shortest time possible in dispute resolution.
You may not achieve results as fast as you’d like to if you decide to go the self-credit repair route.
- Saves your time
Disadvantages of using credit repair companies
Some of the cons are:
- You’ll spend money
If you already have debt, anything that takes away from you negatively impacts our finances.
Unfortunately, the repair companies charge a monthly fee for their services.
You’ll pay depending on the months of service it takes to fix your credit.
- Denies you control of your credit
Having a credit repair specialist handle your credit makes you lose control of your credit.
They’ll suggest measures on how to get back on the right financial path and have a say on virtually everything regarding your finances.
This makes you dependent on them, and should you have credit issues in future, you’ll have to contact them again.
- Some are not genuine
Credit repair services are 100% legitimate.
There are, however, credit repair companies that are out to take advantage of the vulnerable citizens.
It’s important to do your research before hiring a credit repair specialist.
- You’ll spend money
How do you identify reputable credit repair companies?
To avoid being scammed and work with only the best credit repair companies, here’s what you have to look out for:
- Avoid companies that ask for upfront payment
According to the credit repair organization act, no repair company should ask for cash before offering services.
Customers should only pay for services rendered and are satisfied with the results they get.
If the repair agency you intend to work with asks for payment before the work is done, tell them to look elsewhere.
Any reputable company has reviews on their websites from past clients.
You can check a company’s history from the kind of reviews clients leave.
Opt for a company that has at least 10 positive reviews and several five stars.
- Does the company adhere to regulations governing the industry?
The act is put in place to protect citizens from getting scammed.
If the credit repair agency does not adhere to the rules stipulated in the act, chances are high that they are a scam.
- Is it an affiliate of any regulatory body?
Most reputable credit repair agencies are members of at least one regulatory body that govern their activities.
You can research if the repair agency you plan to hire is an affiliate member of BBB (Better Business Bureau) or CREA ( credit repair ethical association)
- Avoid companies that ask for upfront payment
So which are the top best credit repair companies?
Below is a review of the top five best credit repair service providers:
- Lexington Law
This is one of the best credit repair company in the industry, and the best part is that it’s a law firm that deals with credit issues.
It was established in 1990, and boast of more than 27 years of experience in the credit repair business.
Being a market leader, this credit repair company has a customer base of over 1 million.
They have a team of lawyers and paralegals who are highly specialized in credit repair laws.
With the several years of experience, this credit repair company offers its clients services like identity theft protection, and a free credit report and score summary.
Lexington Law offers a discount to family members who want to repair their credit and get their finances on track. If you are a family with a low income, this plan can be very beneficial.
You also get the opportunity to track and monitor your progress via their mobile apps and websites.
You don’t have to sign a contract for a long time. Lexington Law only allows you to sign a month to month contract for the amount of time you plan to use their services. You also have the freedom to cancel the agreement anytime you wish at no cost.
Their cheapest package goes for $89.95 per month while the premier plus plan goes for $129.95 per month. You only pay for work completed.
If you are looking for a reliable, trustworthy, and excellent partner in your credit repair journey, Lexington Law is the repair company to look for. You will get the expertise, flexibility and superior services that you need to get you back on the right financial track.
- Sky Blue Credit Repair
If you need credit repair and restoration at an affordable price, Sky Blue Credit is the repair company to work with.
With a monthly fee of $69, you can get the errors, mistakes on your credit reports fixed. They also negotiate with your creditors and don’t include other extra services that’ll raise the fee.
This credit repair agency works well for the budget conscious citizen and allows you to pause your contract with the click of a button anytime you want to. They also offer a 90-day refund guarantee.
Sky Blue Credit Repair prides itself for an A+ rating by the BBB and a solid reputation for providing citizens with excellent credit repair services at a pocket-friendly price.
- Credit repair.com
Credit repair.com was founded in 1997 and is one of the best online repair platforms.
This credit repair company has an A+ rating from BBB and boasts of being the best in credit restoration.
For fewer credit disputes, and creditors interventions, this credit repair agency recently launched an affordable plan of $49.95.
It also has a top-tier option that goes for $99.95 per month and offers standard services which include credit report monitoring as well as identity theft protection. You, however, don’t pay a setup fee. For that amount, you also get additional services like credit score tracking, credit monitoring and analysis.
Since it’s an online platform, there’s no need for customer service intervention because the platform is user-friendly and easy to navigate. They, however, have a reliable and efficient customer service should you need help.
Although credit repair.com is a tad pricier compared to other credit repair companies, the services they offer are surely worth it. They also offer money back guarantee if you are not satisfied with the services they provided.
If you need excellent services and help in improving your credit scores, then you should consider working with credit repair.com.
- The Credit People
For services like negotiating with your lenders, fixing errors on your credit reports and looking for ways of getting your credit score on track; you could consider working with credit people.
For a monthly fee of $89 and a lump sum of $299 for 6 months, they will fix your credit and offer practical alternatives that’ll help improve your credit scores.
If you are unsure of committing fully, this credit repair company offers a 7-day trial at $19 that allows you to see what they can do before signing a long-term contract.
With Credit People, you don’t have to pay an upfront fee, and if you are not satisfied with the results you get, you have the right to terminate your engagement and not pay for that month’s work.
- Pyramid Credit Repair
This credit repair company was founded in 2010 and has built itself a reputation to reckon with.
If time is of the essence and you need your credit fixed like yesterday, pyramid credit repair is your best bet.
They send several dispute letters and make follow-ups to remove errors and negative information from your report.
They don’t charge an upfront fee and what sets them apart from other industry players is that you get an opportunity to work one on one with one of their representatives throughout the credit repair process.
If you want both efficient and affordable credit repair services, Pyramid Credit Repair is your best choice.
- Lexington Law
So if your request for a credit card or a loan was recently rejected because of bad credit, it’s time to fix your credit. To get a reliable and efficient credit repair company, do your research and always refer to the insights above to help you make a decision.