A poor credit score can make it difficult and expensive to get a mortgage, loan or credit card. It can also be a red flag for identity theft or fraud. But there are ways to improve your credit, including disputing errors on your credit report, adopting responsible financial habits and seeking free or low-cost credit counseling to help you develop a plan. Credit repair services can help you with these efforts, but they come at a price, and it’s important to research the best credit repair before you sign on the dotted line.
One way to find a reputable credit repair company is to look for one that offers a flat-rate payment plan. Companies that charge a monthly fee can often give you access to all of their services for the price of one month of service, which is a good way to see how they perform before you commit.
But you should be wary of credit repair companies that charge a fee before you begin work, or those that have hidden fees or interest payments in their contracts. According to the Consumer Financial Protection Bureau, these companies are often scams. It is illegal for a credit repair agency to charge you before they’ve provided their services, and it can be a red flag if you notice such a fee in your monthly statement.
A reputable credit repair company should clearly explain your rights and how their services work. They should be able to show you how their methods can help your credit and provide a money-back guarantee if they are not effective. They should not, however, promise that they can remove negative accurate information from your credit report. This is because a negative item can only be removed from your credit report if it is inaccurate or unsubstantiated.
Another red flag is a credit repair company that tells you to add someone else as an authorized user on your account. This can be a legitimate way to increase your credit score, but it should only be done with people you trust. Fraudulent credit repair companies may also advise you to file a fake police or identity theft report in your name. This is illegal and can make it more difficult to get new credit in the future because lenders will be hesitant to lend you money if they discover this activity on your credit reports.
In addition to a solid history and fair pricing, the best credit repair companies should offer a money-back guarantee on their services. They should also be willing to communicate with you directly if you have questions or concerns about their work. They should be honest about what they can and cannot do for you, as well as how long the process will take.
Whether you choose to hire a credit repair company or take steps on your own, be patient and remember that improving your credit takes time. But with the right guidance, you can reach your goals of a better credit score and achieve the money milestones you dream of.