If Your Credit is Struggling, This Could Be Your Solution

Living with bad credit can be a real struggle, making it difficult to do things like getting a credit card, renting an apartment, or finding affordable car insurance. But even if your credit score isn't terrible, there's always room for improvement. If inaccurate information is holding your score back, it might be time to consider credit repair.

What Exactly is Credit Repair?

Credit repair is a process that involves removing inaccurate, incomplete, or unverifiable information from your credit report in order to boost your credit score. One in four consumers has errors on their credit report that could be impacting their credit scores negatively. Credit repair companies can help you dispute these errors and improve your overall credit score.

How Can Credit Repair Benefit You?

Credit repair works by eliminating negative items on your credit report that are dragging down your score and are not true. For example, a late payment that was reported inaccurately could be hurting your score by 100 points. While you can dispute errors on your own, working with a credit repair company can make the process smoother. Complaints related to credit bureaus hit a record high in 2020, so having the help of a professional can be beneficial.

What Do Credit Repair Companies Charge?

Credit repair companies legally cannot charge you until they have performed services for you. Many companies charge a monthly subscription fee to cover the work done in the previous month. Costs will vary depending on the company and the length of time you're enrolled. While price is important, make sure to consider other factors like services offered, guarantees, and customer reviews before making a decision.

Finding a Trustworthy Credit Repair Company

While some credit repair companies may use shady tactics, it's essential to choose a reputable one that follows the law. Look for signs of legitimacy, such as adherence to the Credit Repair Organizations Act, complete service information on their website, and a good customer service track record. Make sure to compare companies and choose one that offers a legitimate guarantee.

Consider Alternatives to Paying for Credit Repair

If you can't afford credit repair or prefer to tackle it yourself, DIY credit repair is a viable option. By pulling your credit reports from all three bureaus, reviewing them for errors, and disputing incorrect information, you can improve your credit score without the need for professional help. Another option is working with a nonprofit credit counseling agency to create a debt management plan and get back on track financially.