Best Credit Repair Companies

The time required to fix your credit depends on the company you choose and how low your credit score is initially. Most credit repair companies will provide you access to your credit progress throughout the process. No credit repair business can promise you a specific time frame in which your credit will be fixed. It can take anywhere from days to months depending on your credit situation and how well the company works with credit bureaus to dispute negative items. The best thing to do is to consult with your credit repair company and keep an eye on your credit throughout the process.

First, you should determine how bad your current credit score is, what you are hoping to get out of good credit, and how much you would be willing to pay to get your credit back on track. Because good credit plays an important role in your day-to-day life, paying for professional credit repair services is, more often than not, worth it. Many credit repair companies will offer a free consultation that can help you decide if their credit repair services are a good match for you. Doing your own research on several credit repair companies can give you a good idea of industry prices, services, and possible results.

You can, in fact, repair your own credit. However, repairing credit on your own can take up a significant amount of time, energy, and even money. Credit repair companies are often highly experienced in repairing credit and can offer the best results possible regarding the time and money to dispute items. Credit repair companies also have more reliable and successful credit repair strategies than those who try to repair their own credit.

Companies spend a considerable amount of time making sure items are disputed and removed from credit reports. Those who repair their credit without the help of a company do not have access to the same resources that companies do. For example, many credit repair firms have attorneys on staff, lawyer connections, legal assistants, and credit experts to help them obtain the best results possible.

Although credit repair services vary, most credit repair companies take the same path to repair your credit. Credit repair companies will often set up a credit consultation to go over your credit reports and credit score to figure out what items need to be disputed. Once you enroll in services, credit repair companies start working with the major credit bureaus and creditors to dispute negative or questionable items on your reports.

Regarding disputes, the credit repair company you choose will work on your behalf to get items removed from your credit reports. Since credit bureaus are not restricted by law to review dispute claims, many individuals have a hard time getting items removed from their credit reports. Credit repair companies encounter this challenge as well, but most companies in the industry are determined enough to continue sending dispute claims and have reliable strategies to get their claims reviewed by credit reporting agencies. Most credit repair companies have legal teams and experts to ensure that you are represented fairly and that your credit reports get cleaned up.

Several things can hurt your credit score. Making late payments and not paying your bills can have a huge negative impact on your credit score. In regards to FICO scoring, late payments make up 35 percent of your entire credit score. Your credit utilization rate can also hurt your score. High credit card balances will raise your credit utilization which can negatively affect your overall score.

Closing credit cards is yet another bad credit move as credit history length accounts for 15 percent of your credit score. Closing old credit cards will shorten the overall length of your credit history. On the other hand, opening or even applying for too many credit cards at once will also negatively impact your credit score.

Lastly, maxing out your credit card will hurt your score by making you look irresponsible to lenders and creditors. Although there are many other factors that can hurt your credit score, the habits listed above cause some of the most damage to your credit score.

Building good credit starts with practicing good credit habits. For instance, paying your bills on time can really help you build up your credit over time. Another good habit to form is checking your credit report on a regular basis. Obtaining a free copy of your credit report once a year can help you catch negative or fraudulent activity before it gets out of hand.

Having a good credit mix accounts for 10 percent of your overall credit score. A credit mix means that you use different types of credit like loans, mortgages, and credit cards instead of using just a credit card. When you do use a credit card, however, make sure you are using it wisely to build credit. For example, you should use your credit card to pay recurring payments like rent, utilities, gas, etc. Making these types of payments with a credit card will ensure you don't max out your card or have too high of a credit utilization rate.

The credit repair industry has inspired quite a few myths. One popular myth is that credit repair is illegal. Although some credit repair companies have been known to operate illegally in certain states, most credit repair companies are, in fact, legitimate businesses. In fact, some of the top credit repair companies have been in business for over 25 years.

Another myth that continues to be spread is that you can get the same results from repairing your own credit as you can with a credit repair company. This is not the case because most individuals lack the extensive credit repair knowledge and expertise that credit repair company employees and legal teams have. Although you can repair your own credit, credit repair companies tend to get faster, positive results as it takes time and energy to dispute items and file paperwork.

One myth that also continues to spread is that credit repair companies can guarantee positive, fast results. Due to the variety of credit situations and circumstances, companies simply cannot guarantee anything. Credit repair companies that do promise fast results are most likely operating a scam-based business.

Many companies in the credit repair industry offer quality credit repair services as well as competitive prices. Although some companies are clearly better than others, you may have a hard time determining which company is the best for you. Taking advantage of online resources and taking the time to do your own research can help you identify which companies are trustworthy, which companies have the best prices, and how services vary per company.

You will notice that top credit repair companies usually have more positive reviews than other companies in the industry. Reading reviews is also a great way to determine what credit repair company will be the best for your credit situation. Keep in mind that your credit situation and price range can also affect what credit repair company you choose as some companies offer more rigorous credit repair service options than others.