How Exactly Does Credit Repair Work?
The credit repair process is actually a lot simpler than most people think it seems. Have you ever wondered, though, how exactly does credit repair work? Keep reading to find out!
There are so many different reasons why people resort to credit repair companies, but the main one is improving credit scores by removing negative items. If you want to understand the process of this, below we will explain the details of how services regarding credit repair work.
So How Does Credit Repair Work?
Before we answer the question of "how does credit repair work," we will briefly explain what credit repair is.
Credit repair is the process of repairing a person’s credit by getting rid of negative items on their credit reports. So, typically, people hire these third-party credit repair organizations to fix their bad credit.
Credit service organizations can usually fix credit by removing any inaccurate or negative info on people’s credit reports.
These companies will then attempt to get this info removed from your credit report in exchange for a monthly payment. However, since these credit repair companies are profit-oriented, the services they provide are marketed as ones that are able to help people fix their credit.
Credit repair companies will then work on your behalf to remove this negative info by contacting the major credit bureaus, Experian, Equifax, and TransUnion. They might also contact other financial companies, such as your bank, or even a debt collector, to dispute any errors.
The entire process can be summed up in these 3 simple steps:
- Link your credit report
Automatically importing credit reports from all three bureaus is the first step.
- Dispute Negative Items
The next step is sending out dispute letters. These letters can dispute the following:
- Negative Items
- Hard Inquiries
- Judgments
- Late Payments
- Bankruptcies
- Student Loans
- Collection Accounts
- Repossessions
- Charge Offs
- Carefully Monitor Results
The final step is patiently waiting until the results. This is how services on credit repair work. They will track and monitor all updates as well.
Credit repair is totally legal in almost every state. While some credit repair service providers will claim to have deleted millions of negative credit items, there are no actual reliable statistics currently available on just how effective credit repair services are.
This means that many service providers in the industry are based on unreliable numbers. However, there are some very good credit repair companies as well. Below, we have put together a list of some of the best companies out there that are specialized in credit repair.
We have reviewed everything on this list. We recommend that you read these reviews and compare prices and services before making any decisions regarding what you want and what exactly you are looking for.
Recommended Credit Repair Companies
We know that it can be a bit challenging to find a good credit repair company. That is why we are going to help you out with a list of excellent recommendations. So, let us get right into it! Here is a list of our top three recommendations on credit repair service providers.
Best Credit Repair Companies Recommendations:
1. Lexington Law
Lexington Law tops our list! It is a law firm that is specialized in credit repair services. It can be considered the best and most popular credit repair company by far.
Lexington Law can offer you the following:
- Free credit report summary
- Free credit repair recommendations
- Free credit score
Their credit repair services are offered in these three subscription plans:
- Concord Standard:
Fees: $95.95 per month
This plan will cover the following services:
- Credit Disputes
- ID Theft Insurance
- DebtHandler
- Creditor Intervention
- Inquiry Assist
- Concord Premier:
Fees: $119.95 per month
This plan will cover everything that was mentioned in the previous plan, as well as:
- Credit monitoring
- Alerts when the score changes
- Credit score analysis
- Premier Plus:
Fees: $139.95 per month
This plan is their full-service package. It has all the services that were mentioned previously, in addition to these:
- Cease and desist letters
- Access to FICO
- Score tracker
- Lost Wallet Protection
- Junk Mail Reducer
- Financial planning tools
2. Credit Saint
Credit Saint comes in second on this list! This service provider has been working with people to help fix their credit scores for almost two decades. It is accredited by the Better Business Bureau and has an A+ rating, which is excellent. Credit Saint will also offer a 90-day money-back guarantee if it does not remove any of these negative items:
- Late payments
- Charge offs
- Collections
- Repossessions
- Judgments
- Inquiries
- Foreclosure
- Liens
- Bankruptcies
Credit Saint also has three subscription plans for its services:
- Credit Polish:
Fees: $79.99/month, as well as a $99 first work fee.
This plan gives you:
- Challenges to the 3 Credit Bureaus
- Score Analysis
- Creditor Interventions
- Score Tracker
- Credit Remodel:
Fees: $99/month, as well as a $99 first work fee.
This plan will give you all that was offered with the Credit Polish plan, in addition to these:
- Inquiry targeting
- Experian monitoring
- Clean Slate:
Fees: $199.99/month, as well as a $195 first work fee.
This is the Credit Saint full-service plan. It has all of the following, in addition to the services in the other plans:
- Unlimited Challenges to the 3 Credit Bureaus
- Score Analysis
- Creditor Interventions
- Score Tracker
- Inquiry Targeting
3. The Credit Pros
The Credit Pros comes in third on our list of recommendations for the best credit repair companies. This service provider has a huge range of services; some of these include:
- One-on-one action plan with a certified FICO Professional
- ID Theft restoration and insurance
- Cease and desist letters to collection agencies
- 24/7 access to the client portal
- Debt validation letters to creditors
- Goodwill letters to creditors
- Unlimited dispute letters
The Credit Pros has three subscription plans regarding its credit repair services:
- Money management: $69/month and a $119 first work fee.
This plan will give you the following:
- One-bureau report and scores
- ID Cover® Darkweb monitoring
- TransUnion® alerts
- Real-time account sync
- Bill reminder
- A budgeting system
- Prosperity Package: $119/month and a $119 first work fee.
This plan comes with everything that is in the previous plan, as well as:
- Credit bureau challenges
- Creditor interventions
- Cease & desist letters
- Letter of Reference
- Success Plus Package: $149/month and a $149 first work fee.
This plan is The Credit Pros' full-service package. It will give you all of the previously mentioned services, as well as the following:
- Credit Builder Loan
- Three-bureau reports and scores