Having bad credit is an unfortunate problem that many families face, especially in today’s economic climate. Having a poor credit score can have a very negative impact on your financial health and can result in higher interest rates, loan application rejections, and more. That’s why thousands of people have turned to credit repair companies to help fix their credit and improve their FICO scores.
Credit repair services work by helping to remove negative items from your credit report such as late payments, liens, foreclosures, repossessions, and more. But finding the best credit repair service seems like an overwhelming task. With so many companies to choose from, how can you really know who to trust? That’s where we can help!
At Credit Marvel, we’ve researched and reviewed the top credit restoration companies to determine which services were the best and had the highest satisfaction rate among clients. Each company we reviewed was analyzed on a variety of factors including avg. number of items removed, satisfaction rate among clients, speed of results, and price.
Who are the best credit repair companies?
- Sky Blue Credit
- Lexington Law
Sky Blue Credit
- Only $79 per month
- 90 Day Money-Back Guarantee (Condition Free!)
- Fast Dispute Pace (15 items every 35 days)
- Personalized Free Initial Consultation & Case Evaluation
- Over 27 Years of Experience
- Over 7.5 Million Negative Items Removed in 2018
- $99.95 per month
- Been In Business Since 1997
- Personalized Online Dashboard With Credit Score Tracker
- Credit Saint a BBB accredited business with an A+ rating
- All programs come with a 90-day Money Back Guarantee
- Dollar for dollar, Credit Saint will release more challenges for clients than any other credit service company
Reviews of the Best Credit Repair Companies
There are many people that are skeptical about credit repair companies. They want to know if these services REALLY do work. After reviewing the most popular credit repair agencies and the results of their clients, we can definitely conclude that these services do, in fact, work. Obviously, not all companies are created equal and each company has their own methodology for removing negative items from your credit report.
Our credit repair company reviews will provide you the information required to make an informed decision. Just to give you an idea of the type of results to expect, Lexington Law claims that their clients have an average of 10 negative items removed from their credit report. Most companies do offer a money-back guarantee if you’re not satisfied with their service. In addition, most services offer a free case evaluation so they can see if they can help your situation before you decide to sign up.
How Do These Services Work To Repair Your Credit?
If you’re going to be hiring one of these services, you probably want to know what you’ll be receiving for your money – right? Companies that claim to help fix your credit should be completely upfront with what they can and can’t do for your situation. A good company can remove negative items from your credit report and help improve your FICO score, making it easier to obtain a home, vehicle, mortgage, or insurance.
Most credit repair companies work in the following way:
- Obtaining your credit report from all three major credit bureaus (Equifax, Experian, and TransUnion)
- Identifying specific items in your credit report that can be disputed.
- File credit disputes on your behalf using little-known strategies that yield a high success rate.
- Communicate with creditors and credit bureaus on your behalf to remove negative items as soon as possible.
Are Credit Repair Companies Worth The Cost?
Depending on which company you decide to use, the price of service will generally be between $59.95 and $99.95 per month. However, there are no long-term contracts and you can cancel the service at any time. Considering how much extra money you pay in high-interest charges with a bad credit score, we do believe that the best credit repair services are worth the price. A higher FICO score can result in better interest rates on loans, mortgages, credit cards, and more. If you have a poor credit score and need to fix your credit fast, these services will get you the best results in the shortest amount of time.
Factors to Consider Before Choosing a Credit Repair Company
Chances are if you are taking the time to research credit repair services, personal finances are important to you. This is why it is critical to do your homework before settling on a company to help you repair your credit.
The #1 warning sign that you should avoid a company is upfront fees. No reputable credit repair agency will ask you to pay any monies upfront. Fees should only be paid once the services have been rendered.
Educate yourself on the items currently negatively impacting your credit score. There are quite a few free resources online for acquiring a copy of your credit report. Often, your bank will provide you with a free report.
Be clear about your expectations.
Educate yourself on your rights. The Fair Credit Billing Act was enacted in 1974 for the purpose of protecting consumers from unfair credit billing practices. It provides the guidelines for procedures to follow when disputing issues regarding billing statements.
5 Important Things To Find Out From A Credit Repair Company Before You Choose One
Is The Company Both Bonded and Insured?
Any credit repair company that you are considering should be fully bonded, licensed, and insured. Otherwise, you will most certainly find yourself in a compromising position should something go wrong. A credible credit repair company will have no issues showing you their credentials.
What Information Should I have on hand?
Credit repair companies will all have certain ways of doing things, but FICO functions the same for all of them. You will want to make sure you have the following personal and/or business information ready before making that call.
- Government-issued photo ID or passport
- Your current home address
- Employer information
- Account numbers for your bank and credit cards
- A list of both debts and assets
- SSN or EIN
- Paperwork if you filed for bankruptcy
- Divorce papers if necessary
Ask questions like “what contributes to my credit score?”
If you do not know anything about credit, you will not be sure if the company actually knows what they are doing. You will want to ask about the factors that contribute to a credit rating. Inquire about age of open credit lines, hard credit inquiries, and the percentage of on-time payments. A reputable credit repair company will not only know the right answers, but also how to fix them.
How Can I Contact You If I Have Questions, Comments, or Concerns?
The level of customer service you receive tells you a lot about a company. Consider asking these questions:
- Will I have a direct line of communication with whomever is handling my account?
- Are there specific hours of operation or is someone available anytime questions come up?
- What will be required of me during this process and what are my rights?
- What if I change my mind? Is there a penalty?
- What if I am not happy with the outcome after the process is done?
- What is the level of involvement expected from me?
How will I be able to keep track of the progress you are making?
A trustworthy credit repair company will have no issues supplying you with complete access to all the work they are doing for you. They should be able to give you access to a well designed and secure online account where you will be able to track the progress they are making. If you find the company cannot provide something similar to this, chances are they are not equipped to handle your personal data.
Red flags to look for:
As you determine which credit repair company is right for you, watch out for those companies that:
- Ask for payment upfront. This type of practice is banned by the Credit Repair Organizations Act.
- Ask for payment info over email. This is one of the leading ways scams occur.
- Don’t have confidence in your efforts. Credit repair companies should let you know that you have the power to fight inaccuracies independently. Then, they can point out areas where they can support you.
- Do not give you a contract in writing. Credit repair companies are required to give you this physical proof that states your cancellation rights.
- Promise a fast fix. If a credit repair company tells you it can help fix things fast for you, beware. The credit bureaus, by law, have 30 days to respond to a dispute you submit regarding your report. If the credit bureau disagrees with the dispute, you can always contact the creditor directly. They then have 30 days to respond. Lastly, the credit bureau has an additional 30 days to respond from when you give them information from the creditor. So this is a long process.
Additional Red Flags:
- The company has complaints submitted against them. Go online and check the CFPB complaint database. Also be sure to read all reviews about the company. Take it a step further and check with the attorney general, the corporate commission offices in your state, and the state where the headquarters of the business is located.
- The management has complaints against them. Digging a bit further, you can Google the managers at the company to see what their professional histories entail. What they’ve accomplished in the past is a strong indicator of how they might serve you at present. (If they have a poor track record, steer clear.)
- Saying they can get legitimate negative information removed. You want to stay away from any company that says they will do something illegal for you. Every project should always be above board.
- They ask you to lie. If a company asks you to make an inaccurate or misleading statement about details on your credit report, run in the other direction. Engaging in any of this is a violation of the CROA (Credit Repair Organizations Act).
- The company suggests you come up with a new credit profile. This is not too common of a practice, but some companies might suggest using a new employer identification number instead of your real social security number to set up a new profile.
Good signs to look for:
Here are some signs you want to look for when it comes to choosing a good credit repair company:
- They offer you a free consultation. A good credit repair company will offer to review your report and let you know what they will be able to do for you and what they will not be able to do for you.
- They have been in business at least five years. You also want to make sure they have never been shut down for any FTC violations. This shows longevity and legitimacy. Bonus tip: Ask if they have handled cases similar to yours. For example, if you are facing a lien from the IRS, you want to know that they have successfully handled this type of situation before.
- They have their own attorney on staff. This will help ensure that everything they do is done legally.
- They explain your options to you. You need to have a clear understanding of what recourse you have if what you set out to achieve does not happen.
- The company is licensed, bonded and insured.