Credit Repair Services
Why Credit Repair Companies?
- Bad credit affects whether you can get a job, get a credit card, take out a loan, or even get insurance.
- DIY credit repair is often time consuming. Forget the tedious tasks and let a professional do the work.
- Consulting a professional saves time & money. Also they help speed up the credit repair process.
- Credit repair services only charge after the work has been completed.
|Overview||Most Recommended||Cheap Monthly||Popular||Competitive||Reputable|
|Company Repairing Credit Since..||1989||2004||1991||2003||2000|
|Credit Report Review and Disputes||Yes||Yes||Yes||Yes||Yes|
|Credit Score Counseling||Yes||Yes||Yes||Yes||Yes|
|Helps Meet Lender Requirements||Yes||Yes||Yes||Yes||Yes|
|Risk-Free Money Back Guarantee||No||No||No||No|
In business since 1989, all-inclusive plan. Personalized approach to credit repair w/ money-back guarantee.
Customized credit repair program established by attorneys. 2 attorney-designed service levels.
Founded by lawyers. Offers 3 service levels w/ credit monitoring related services.
Pay-as-you-go services. Creditor & collection interventions offered. No hassle cancellations.
Proprietary Fresh Start credit repair program. All-encompassing credit repair services.
|Price / Mo||$49||
|One-Time Setup Fee||$79||$79||$99.95||
Common Mistakes that Hurt Credit
Some of the common mistakes consumers make when trying to improve their credit are:
• Closing accounts – this could actually raise your debt to total credit ratio, an unfavorable factor when calculating a credit score.
• Stop using credit cards altogether – this prevents new credit history information from being obtained and could result in the credit card issuer closing the account, thus increasing your debt to credit ratio.
• Debt consolidation – Although debt consolidation offers savings in low interest rates, consolidating credit cards impacts your debt to credit ratio, bill payment history and types of credit in force.
The best approach to debt management is to do it slowly. If you have to close any accounts, do so one at a time over several years.
How to Repair Credit
Complete the following to-do list, or subscribe to a credit repair service to have a professional perform the tasks:
- Collect your credit reports from the three major credit reporting agencies.
- Locate errors or disputable points on your reports.
- Collect evidence to argue that the erroneous entries exist.
- Properly dispute the errors in accordance with the credit bureaus' procedures.
- Improve your debt-to-credit ratio.
Your Credit Score
It’s only a three digit number, but it means so much. A credit score, commonly known as a FICO score, is what creditors and others use when deciding whether to do business with you.
An individual has three credit reports, plus three FICO scores, one from each credit reporting agency. FICO scores change as the data changes in your credit reports.
Most lenders look at a FICO score from one or more consumer credit reporting agencies, as well as their own score from analyzing your credit report, when making lending decisions.
A FICO score ranges from 300 to 850 and is based on the following:
• Bill payment history
• Ratio of debt to total credit amount available
• Credit history
• Types of credit in force
• Credit inquiries made by lenders.
A high credit score means better interest rates, favorable lending terms and a greater amount of credit extended.