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With so many bad credit repair agencies out there, it can be hard to know which you can trust. Here are a few credit restoration services that stand out from the rest. All of these credit repair companies come highly recommended, but each is different from the others in unique ways.
|Rank||Credit Repair Service||Known For||Monthly Fee||BBB Rating||Expert Rating|
|1||Sky Blue Credit Repair||Overall Coverage||$79||A+||★★★★★|
|2||Lexington Law Credit Repair||Features||$89.95||N/A||★★★★★|
|4||The Credit People||Trial Period||$79||A-||★★★★|
|5||Pyramid Credit Repair||Customer Service||$99||N/A||★★★|
Credit repair works by changing or removing items from your credit report that are dragging your credit score down. This can be done by fixing mistakes on your credit report, negotiating with lenders to remove or change negative reporting, or utilizing loopholes in credit reporting regulations and rules to have negative items removed.
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Simple. Thrifty. Living. does receive compensation for some of the services that we recommend, although we have strict editorial guidelines and only recommend services that we truly believe are the reputable.
First, the credit repair service will assess your credit situation by looking at your credit reports. Second, the credit repair service will give you a plan of action to improve your bad credit score. Once you’ve agreed on a plan, the company will start taking action. It may seem like things are moving slowly, but too many inquiries and contentions from the company all at once can raise red flags with the credit bureaus.
Even the top services do not help you with your credit card debt. If you are looking for debt relief, check out this Freedom Debt Relief review or this Accredited Debt Relief review to get a better idea of how debt relief services work.
Most credit repair companies will accomplish all of the following:
To determine the best credit repair company for your unique situation, we recommend keeping the following factors in mind: reputation, legal compliance and customer reaction.
The U.S. government enacted the Credit Repair Organizations Act which sets strict laws and guidelines that all credit repair companies must abide by. In general terms, companies that abide by these guidelines can be trusted. Those that don’t are probably a scam. Things to look for:
The Consumer Financial Protection Bureau does fine and prosecute any credit repair agencies that are practicing unfairly. So any company that has been around for decades and hasn’t been investigated or fined by the CFPB usually means they are practicing fair credit repair.
Customer opinion is extremely telling. The BBB helps by listing how many complaints a company has against it. Take most of these with a grain of salt; many people are upset if a credit repair company does not drastically improve their credit score, and will file a complaint because of that, but as we said, there are no guarantees when it comes to credit repair.
Our team carefully reviewed the companies above using this and other criteria.
Yes. Both terms refer to repairing or restoring your credit history with the goal of improving your credit score, whether by yourself or with the help of a company.
Agencies will prioritize fixing errors on your credit report. If you have had a solid credit history of credit usage in the past or have a good track record for the past few years, the services will probably try to negotiate with your lenders to get some of the negative items removed from your credit reports.
Negative items from lenders that are traditionally unresponsive can also be removed. Credit repair services may try to contest those items because, according to the Credit Reporting Act, the credit bureaus only have 30 days to verify the information. If they can’t verify it, the items must be removed from your report. If you want to check out your credit report before you sign up a credit repair service, you can get a free credit report at annualcreditreport.com.
If you think your credit score is suffering from issues with identity theft, an identity theft protection service would be a better option than credit repair, since those companies can help warn you of future attacks before anything can happen to your credit score. Check our our Lifelock review to see how these services work.
The top credit repair services depends on what you are looking for. Determine what your highest priorities are, whether it be price, reputation, a money back guarantee, or something else. Then, reference our company comparison at the top of the page.
Professional companies will save you time; and they have more experience. But you could get the same results from doing your own credit repair. Here are the basic steps:
Despite the stigma associated with credit repair agencies, there are companies that can help your credit score. Here’s how to find one that can help and avoid scams.
Finding a company: A good way to find a legitimate credit repair company to use is to look for a company that follows these government standards:
Know what to expect: Credit repair is not a magical fix to your credit problems. The companies can contest items on your credit reports, but whether the credit bureaus agree to remove those items is outside of their control.
Don’t overpay: Most companies charge by the month, which may seem convenient. But the process can also take a long time. Watch out for companies that purposefully prolong the process to make you pay more.
About 6 months seems to be the average amount of time that clients stay with credit repair agencies. Many agencies say that most clients stop around that time because they are satisfied with the results, but there is no guarantee that it will take the same amount of time for everyone. There are many factors that go into repairing credit:
And keep in mind, there are no guarantees in credit repair, and there is a chance that credit repair might not be able to help you with your credit issues. Some people see their score go up 40 points in 4 months (pre CreditRepair.com), while others can be chasing the same increase for years.
Bottom line, don’t expect a quick fix when it comes to credit repair.
Advertising Disclaimer: Simple. Thrifty. Living. does receive compensation for some of the services that we recommend, although we only recommend services that we truly believe are the best.