If you do it yourself, repairing your credit won’t cost you anything. A credit repair company will charge you a fee, which could be pretty high. You may not believe your credit score is possible until you see an ad for a credit repair company. Look into it and wait until you see the results.
Is it Possible to Pay for Credit Repair?
As the name suggests, a good credit score can’t be bought for money. Credit repair companies specialize in removing errors but cannot remove damaging, accurate information.
Are Credit Repair Companies Expensive?
There are two ways that credit repair services charge. Some companies charge you per error, such as those that cost per deletion. Most credit repair services operate on a monthly subscription ranging from $50 to $150, depending on the package. You may also pay a startup fee, known as the first-month subscription fee.
Some companies use various techniques to keep you subscribed for several months. Some companies limit the number of deletions you can request per month. You are forced to stay subscribed for longer when you commit multiple errors. Since it takes a while for your credit score to update, some companies advise you to stay subscribed to their credit score update program and pay monthly fees until you see your credit report corrected. In either case, it could be costly. It would cost $700 to get credit repair services, including $100 for the first month and $100 for each month after that.
Scam Credit Repair Companies
Even though there are legitimate credit repair companies in America, it is also a fertile ground for scammers. Red flags to watch out for are listed by the Consumer Financial Protection Bureau. Some of the red flags are:
- Payment in advance is being demanded.
Under the federal Credit Repair Organizations Act, you cannot be forced to pay for services before they have been provided. At the same time, some legitimate companies charge enrollment or setup fees.
- Ensures that your credit report will be free of negative information.
You can only correct your credit report if it contains incorrect information. You cannot remove accurate information.
- It does not allow you to contact credit bureaus.
One of the most critical steps to repairing your credit is disputing inaccurate information with the credit bureau that reported it. If a company advertising itself as one that fixes credit recommends otherwise, there are hiding something.
Your credit can be repaired without paying a fee. If you follow the step-by-step instructions provided by each of the three major credit bureaus, you can handle the process yourself. An experienced credit repair company can be of service to you if you need it. They typically charge between $19 and $149 monthly for their services. You should be cautious of scam credit repair offers in America that may leave you in an even worse financial position. Selecting a credit management firm that can assist your credit repair should be done cautiously.