The services offered by a credit repair company are a few. How credit repair works · What credit repair. And even if you hire a reputable credit repair company, you'll have to do some of the work yourself. But if you just want a better credit rating and don't plan to apply for a loan or a new credit card in the near future, then paying for a high-end service is probably a stretch.
When you repair your credit on your own, the cost ranges from nominal shipping costs to completely free shipping costs. Check your credit score in another month or two to see if it has changed (not all errors will affect your credit rating). Its main function is to develop a plan to repair your credit and to help you, or act on your behalf, to challenge inaccurate information. Believe it or not, you can repair your own credit for free and you don't need to pay anyone to do it.
However, if your credit is damaged due to bankruptcy, it could take up to 10 years for that to disappear in your credit history. By law, you are entitled to receive a free credit report from each of the three major credit bureaus, Equifax, Experian and TransUnion, at least once every 12 months. Other companies offer credit score updates and, since your score may take a few months to update, they recommend that you stay registered and, at the same time, pay your monthly fees until you see the changes reflected in your credit report. With the full credit repair service, you authorize the service to obtain your credit reports; in some cases, you pay a fee for that step.
According to the Credit Repair Organizations Act, only an attorney licensed to work in your state can file disputes on your behalf. If you're really confused about your credit situation, consider working with a nonprofit credit counselor who can help you get back on your feet for a reasonable price. One of the most unfortunate parts of credit repair companies is that there are a lot of scammers hiding among legitimate companies. This is because credit repair companies can only help eliminate errors; they cannot delete information that is harmful, but that is correct.
How long it takes to correct your credit depends on how quickly you report errors to the relevant credit bureaus and how quickly the agencies act to investigate and correct them. However, if you hire a credit repair company to help you, you'll have to pay fees, which can vary a lot.