Credit Repair Companies and When They’re Necessary

Credit repair relates to the process of removing negative information, inaccuracies, fraudulent activity or other mistakes from your credit reports. Since poor credit can affect many areas of your life, it is important that you periodically review your credit report for errors and dispute any inaccuracies as necessary. If you do not, you may struggle to obtain lower interest rates when applying for a loan or new line of credit. In some cases, bad credit can even affect your ability to rent an apartment or qualify for a loan.

Credit repair companies such as Sky Blue and Lexington Law can help you improve poor scores on your credit report, especially if you need to dispute many items at a time. However, you may choose to dispute these items on your own if you prefer.

What is credit repair?

Many credit repair services are available if you wish to improve a poor credit score, as having good credit increases your chances of getting lower interest rates on loans, qualifying for a loan or credit card, landing a new job or renting an apartment. Typically, the process of repairing your credit with or without the help of a professional includes the following:

  • Reviewing your credit reports for incorrect or incomplete information
  • Disputing mistakes or inaccuracies on your credit report
  • Creating a budget for the future
  • Seeking financial assistance to help you better manage your money

How a Credit Repair Company Can Help Improve Your Credit Score

While the credit repair services a company offers can vary, most will help you to dispute negative or incorrect information on your credit report. Typically, you pay a monthly fee while the repair company performs the following steps:

  1. Requests a copy of your credit report from Experian, TransUnion and Equifax
  2. Reviews your credit report for errors and incomplete information
  3. Develops a plan to remove these items from your credit report
  4. Disputes errors on your credit report and negotiates with creditors to remove any negative items

If you are looking for free credit repair assistance, you may be able to obtain free or discounted services by working with a local non-profit credit counselor. While these counselors will not dispute credit errors on your behalf, they can walk you through the process while helping you to better manage your money.

Alternatively, you may attempt to repair your own financial standing by reviewing your credit report for errors and fraudulent activity. As part of the Fair Credit Reporting Act (FCRA), you can obtain a free copy of your credit report from Equifax, TransUnion and Experian once per year.

If your credit report contains errors or inaccuracies, you may report these errors directly to the crediting bureau, as doing so will eliminate the need to pay a company to perform these services. However, hiring a credit repair company to perform these services may be a better idea if your report contains a higher volume of errors or you do not have the time to dispute these inaccuracies on your own.

Types of Credit Repair Companies Available

Some of the best credit repair companies available include Sky Blue, Lexington Law and CreditRepair.com. While there are several pros and cons to working with each of these companies, taking the time to read customer testimonials and conduct plenty of research beforehand can help you to select the best company for your specific needs.

When looking for credit repair reviews, remember to search for the company under the Consumer Financial Protection Bureau’s (CFPB) Consumer Complaint Database. You may also contact the Corporate Commissions and Attorney General offices in the state where the repair company is headquartered.

Learn more about each of these top-rated companies in the sections below.

Sky Blue Credit Repair

For $79 per month, Sky Blue can help you to repair your credit by disputing errors and incorrect information on your credit report. After registering for an account and accessing your credit reports, Sky Blue will begin to dispute the errors on your credit report within one week. Unlike many other credit repair companies that move at a slower pace, Sky Blue disputes 15 items every 35 days.

While each situation varies, you may begin to see results within one month of signing up for these services. If you are not satisfied with the results after 90 days, however, Sky Blue will provide you with a full refund. Otherwise, you may choose to pause or cancel your membership at any time.  

Lexington Law

With more than 2,400 Lexington law credit repair reviews on its website and an average satisfaction rating of 4.1 stars out of five, it is easy to see why more than 500,000 clients have chosen to work with Lexington Law when repairing their credit. According to the company’s website, Lexington Law removed 10 million negative items from its customer’s credit reports in 2017 alone.

Moreover, previous studies have shown that Lexington Law credit repair clients experience an average of 10.2 item removals after the first four months of signing up for these services. While Lexington Law cannot guarantee these results, it does offer a free credit consultation to help you determine whether these services are right for you.

CreditRepair.com

If you need fast credit repair assistance, CreditRepair.com can help. On average, the company can help you to increase your credit score by 40 points in just four months. Additionally, the company offers a free credit consultation to help you decide whether CreditRepair.com is the best solution for you.

How quickly can a credit repair company help improve your credit?

While even the best credit repair companies may claim to improve your credit within the first few months, these results will vary by situation. If your credit report contains a large volume of errors and you are disputing these inaccuracies for the first time, the process of repairing your credit will take longer than someone who only needs to dispute a few mistakes.  

Moreover, the process of repairing your credit typically takes at least one month, as credit bureaus must investigate your dispute within 30 days of receiving your request. For most consumers, however, the repair process can take anywhere from three- to- six months or longer, depending on the number of errors that need to be disputed.