Quick Answer: To begin “repairing” your credit on your own, check your credit score, make payments on time, and stay away from new credit. Prior to hiring a company to correct any errors on your credit report, it’s a good idea to concentrate on doing it yourself. Credit repair companies cant do anything that you cant do on your own for free.
Nothing that a credit repair service can legally do for you, not even the removal of inaccurate information, that you can’t accomplish on your own for little to no cost And the cost of hiring such a company can be considerable, ranging from hundreds to thousands of dollars.
Although it may be alluring to assign the task of credit repair to a company, it’s crucial to understand what the company can and cannot accomplish and to take action on your own before paying their fees.
The short answer is no, you cannot pay someone to fix your credit score. While credit repair companies may claim they can magically erase negative marks from your credit report, the truth is they can’t do anything you can’t do yourself for free.
Here’s the deal:
- Credit repair companies cannot fix inaccurate information: If your credit report contains errors, you have the right to dispute them directly with the credit bureaus (Experian, TransUnion, and Equifax) for free. There’s no need to pay a middleman to do this for you.
- Credit repair companies cannot remove accurate information: Negative information on your credit report, such as late payments or collections, will only be removed if it’s inaccurate or outdated. Credit repair companies cannot magically make this information disappear.
- Credit repair companies can be expensive: These companies typically charge monthly fees or per-item fees, which can add up to hundreds or even thousands of dollars. That’s a lot of money to spend on something you can do yourself for free.
Instead of throwing your money away on a credit repair company. consider these free alternatives:
- Review your credit reports regularly: You can access your credit reports from each of the three credit bureaus for free once a week at AnnualCreditReport.com. Look for any errors or outdated information and dispute them directly with the credit bureaus.
- Dispute errors on your credit reports: If you find any mistakes on your credit reports, you can file a dispute with the credit bureau. The credit bureau is then required to investigate the dispute and correct any errors within 30 days.
- Improve your credit habits: The best way to improve your credit score is to develop good credit habits. This includes paying your bills on time, keeping your credit utilization low, and avoiding opening new credit accounts too often.
Remember, you are in control of your credit score. Don’t let a credit repair company convince you otherwise. By taking the time to review your credit reports, dispute errors, and improve your credit habits, you can achieve a better credit score on your own, without spending a dime.
Here are some additional tips for improving your credit score:
- Pay your bills on time: This is the single most important factor in your credit score. Even one late payment can have a negative impact.
- Keep your credit utilization low: Your credit utilization ratio is the amount of credit you are using compared to your total available credit. Aim to keep this ratio below 30%.
- Avoid opening new credit accounts too often: Every time you apply for a new credit account, a hard inquiry is placed on your credit report. Too many hard inquiries can lower your credit score.
- Become an authorized user on a credit card with good credit: This can help you build credit history without having to open a new account yourself.
- Consider a secured credit card: If you have bad credit, a secured credit card can help you rebuild your credit. With a secured card, you make a deposit that serves as collateral for the credit line.
By following these tips, you can improve your credit score and achieve your financial goals.
How to “Fix” Your Credit by Yourself
There is no quick fix for your credit. Negative but true information (like late payments, charge-offs, or collection accounts) will stay on your credit report for a period of seven to ten years. But, there are actions you can do to begin establishing a better credit history and raise your credit scores gradually.
How to Get Extra Help With Your Credit and Debt
If your debt is manageable, consider consolidating it via a personal loan or balance transfer credit card.
If you are eligible and follow the program guidelines, debt consolidation loans may be able to offer lower interest rates and monthly payments. You can usually get an introductory 200 percent annual percentage rate (APR) promotion with a balance transfer card, which allows you to pay down the balance interest-free. Just be mindful not to continue charging on the original card once the balance is transferred.
In the event that your debt seems unmanageable and your credit score is insufficient to qualify for a low-interest personal loan or a balance transfer card, it could be beneficial to look into hiring a trustworthy credit counseling organization. Many are nonprofits, and you can usually receive free consultations with tailored advice for your particular situation.
You can review more information on selecting the right reputable credit counselor for you from the National Foundation for Credit Counseling.
Credit counselors can also help you develop a debt management plan (DMP) with unsecured debt like credit cards. Under this arrangement, the credit counseling agency will receive your monthly debt payments and distribute the money to your creditors. The agency may also be able to negotiate lower monthly payments and interest rates.
Your credit score may suffer if the credit counselor negotiates settled amounts that result in you paying your creditors less than what was initially owed. Furthermore, accounts paid through a DMP that were not paid as originally agreed may appear on your credit report, which could be seen adversely by lenders. However, if you stick to the new terms and continue to make payments on time, using a DMP might not have a negative effect on your credit history.
How To Fix A BAD Credit Score ASAP
FAQ
Is it worth paying someone to fix your credit?
How much is it to pay someone to fix your credit?
Can you pay money to fix your credit score?
Can I pay someone to change my credit score?
Can a credit repair service fix my credit score?
But the only legitimate “fixes” credit repair services can actually make — correcting errors on your report or having outdated information erased — can be taken care of on your own. For better financial health, know your Credit Score at all times. Your Credit Score affects many aspects of your life.
How do I Fix my credit score?
Your payment history makes up 35% of your credit score. So if you want to fix your credit, you should focus on ironing out your monthly payments. While it may feel like a challenge to pay all of your bills on time, there’s a simple hack to getting this right: autopay.
Can a credit repair company repair my credit for free?
Credit repair companies often charge hefty fees to find and dispute inaccurate negative information in your credit reports. However, you can repair your credit for free by checking your credit report and taking measures to improve your credit score. Here are 11 steps you can take on your own to steer your credit in the right direction. 1.
Can you fix your own credit for free?
You can fix your own credit for free. “It is important to know that you can work to repair your credit on your own with the same tools that a credit repair agency would use,” Wahl said. Find Out: 90-Second Moves To Raise Your Credit Score 200 Points