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It might seem unachievable to improve bad credit until you see an advertisement for a company that provides credit repair services. These businesses claim to be able to repair your credit; all you need to do is send them a check and wait. However, the fact remains that credit repair services are expensive, and you are paying for something that you can perform yourself.
Don’t waste your money on credit repair specialists! You can easily fix your credit yourself for free,
The Truth About Credit Repair Specialists
Credit repair specialists are businesses that claim to help you improve your credit score by removing negative items from your credit report. However these companies often charge exorbitant fees for services that you can do yourself for free.
In fact many credit repair specialists are nothing more than scams. They may make false promises about what they can do for you and they may even charge you upfront fees before they’ve done any work.
How to Fix Your Credit Yourself for Free
Here’s how you can fix your credit yourself for free:
- Get a free copy of your credit report from each of the three major credit bureaus: You can get your free credit reports at AnnualCreditReport.com.
- Review your credit reports carefully and look for any errors: Common errors include late payments that you made on time, accounts that you never opened, and debts that you’ve already paid off.
- Dispute any errors that you find: You can dispute errors with the credit bureaus online, by mail, or by phone. The credit bureaus are required to investigate your disputes and correct any errors within 30 days.
- Be patient: It may take some time to fix your credit, but it’s definitely worth it. Once you have good credit, you’ll be able to qualify for lower interest rates on loans and credit cards, and you’ll be less likely to be denied for credit altogether.
The Bottom Line
Credit repair specialists are a waste of money. You can easily fix your credit yourself for free. Just follow the steps above and be patient.
Frequently Asked Questions
How much does it cost to hire a credit repair specialist?
Credit repair specialists typically charge between $15 and $150 per month, in addition to a setup fee.
Can credit repair specialists really help me improve my credit score?
Credit repair specialists can help you remove negative items from your credit report, but they cannot guarantee that your credit score will improve. In fact, there is no guarantee that any credit repair company can improve your credit score.
What should I do if I think I’ve been scammed by a credit repair specialist?
If you think you’ve been scammed by a credit repair specialist, you should report them to the Federal Trade Commission (FTC) and your state’s attorney general.
Additional Resources
Don’t waste your money on credit repair specialists. You can easily fix your credit yourself for free. Just follow the steps above and be patient.
Disclaimer
I am not a financial advisor, and this article should not be considered financial advice. Please consult with a qualified financial advisor before making any decisions about your credit.
Can You Pay to Have Your Credit Repaired?
Unlike how the name suggests, you’re not able to just pay money for a good credit score. This is so that credit repair businesses can only assist with the removal of errors; damaging but accurate information cannot be removed.
For instance, credit repair companies are powerless to help you if you have a history of making late payments, defaulting, having a high credit card balance compared to your credit limit, or other common negative marks.
How Much Do Credit Repair Companies Charge?
Credit repair services generally charge in one of two ways, depending on the company. Certain companies charge for each error they are able to remove from your credit report under their pay-per-delete model.
However, credit repair businesses more frequently employ a subscription-based business model, with monthly costs varying from $50 to $150 depending on the exact package. A one-time setup fee, also known as a first-work fee, might also be required and could cost the same as a full month’s subscription.
Most companies have ways to get you to stay signed up for several months. Certain companies have a monthly limit on the number of deletes they will assist with; if you have multiple errors, you may have to remain enrolled for a longer period of time. Some companies charge a monthly fee to update your credit score, and they advise you to stay enrolled until you see the changes appear on your credit report because it may take several months for your score to update.
Either way, it’s an expensive route to go. If you need to pay a $100 first-work fee plus six months of credit repair services at $100 per month, you’re looking at spending $700 for something you could do on your own.