Credit repair companies: find the best of 2022

According to a Consumer Reports Research, more than 34% of Americans have errors or mistakes in their reports. The worst part about this research is that most of the participants didn’t really know about the problems before they got a copy of their credit report and were asked to look through it. 

Maybe you’re suffering with a less than stellar score because of things that aren’t your fault! That’s why you might need to look for some credit repair companies. They’ll help you fix your credit report and get better scores to fulfill your financial plans. If you’d rather do that on your own it’s also possible, keep reading to understand why. 

What are credit repair companies?

Credit repair companies are those that manage to fix those pesky mistakes on your report for a fee. They claim to make everything faster, simpler and easier and allow you to get better scores stress-free. If you’ve been trying to improve your credit score by spending responsibly without much in the way of results, this could be the service for you. 

Don’t mistake the credit repair companies with credit counseling. This is another type of service that is mostly free. They are offered by nonprofit organizations that wish to make financial education more widespread. Counselors review your financial info and credit reports to allow you to make better decisions. 

But they don’t go after changes to your credit report. That’s why it’s important to decide exactly what it is you’re looking for and hire the right services. After all, it’s your credit score and a lot of advantages you could get through it that’s on the line. 

How do credit repair companies work?

To begin with, we’d like to warn everyone of potential frauds and scams. Before you hire credit repair companies it’s essential to check their credentials and see how previous clients evaluate their services. Look for them online to see if there are complaints and reviews about them. 

Since the credit score counseling area isn’t too well regulated, there are plenty of scams and frauds lurking around. Some scammers just get in touch to steal your personal information and attempt identity theft. Others go a bit further and charge fees without actually doing the service. 

Most of these companies request a copy of your credit report to hunt for mistakes and problems. They’ll generally check copies from TransUnion, Equifax and Experian. After identifying the problems, they’ll create a plan to negotiate with creditors to get the problems removed by: 

  • Request to validate information; 
  • Sending cease and desist letters to debt collectors; 
  • Letters to dispute wrong and negative marks. 

How to find out if credit repair companies are trustworthy?

Since this market is teeming with fraud, we’ll dive a little deeper into understanding when credit repair companies are actually trustworthy. For that you’ll just have to go through a simple step by step: 

  1. Check online reviews of the company, both on Google and Social Media. If they don’t have any, that’s a red flag, as well as many complaints; 
  2. Check the Consumer Financial Protection Bureau’s database for other complaints; 
  3. Look for other review sites, such as this one, for recommendations. 

You must also pay attention to the promises that each company makes. Fixing a credit score isn’t something easy, simple or that happens overnight. So if someone says they can remove negative information that’s accurate or get you up to an excellent score they’re certainly lying. 

Is credit repair expensive?

That depends a lot on where you are in the USA, the service that needs to be done and how long it might take. Some credit repair companies just charge a small fee, while others might have you pay quite a lot to get a better credit score. Just be aware that you shouldn’t have to pay anything until the job is complete. 

Sometimes you’ll have to pay a one time fee or one for each problem that the credit repair companies remove from your report. This could go from $35 to $750, maybe even more. Since this is a nuanced service, the value changes a lot. 

For more complex jobs that will take a while to end, the companies might charge monthly fees. And there are fees that you’ll have to pay for others, such as the reporting bureaus themselves for constantly accessing your reports. 

How long do credit repair companies take to work?

This is also a complex question because there’s no way to give users a time limit without knowing their plight deeply. Most cases take from three to six months to solve most problems that are dragging a credit score down. However, it could take longer if there are too many problems that you left unresolved for years. 

After credit repair companies send a dispute to credit bureaus, they take about 30 days to solve the problem in your report itself. They must first investigate the info and make sure that the company is claiming something true. If there’s a problem, they’ll reach out to the credit repair agency and ask them to investigate further after the first 30 days. Sometimes, the credit bureau will consider the dispute frivolous and answer within five days that there won’t be any changes. 

Red flags for bad credit repair companies

The Consumer Finance Protection Bureau (CFPB) warns clients that more than half of the complaints they received in 2016 about credit repair companies had to do with fraud. But how can you identify this before it’s too late? 

There are a few red flags to watch out for that the CFPB itself points out. First of all, the credit repair companies must give you a written contract explaining in detail the services they’ll do for you. They aren’t legally allowed to lie or mask the nature of their service.

This contract must allow clients to cancel the service within three days without charge. And the company mustn’t charge any fees before the service is completed. If you find a company that seems good, check these points. If they start charging beforehand or don’t allow you to cancel, something is probably wrong. 

Best credit repair companies of 2022

We’d like to help you find credit repair companies that are trustworthy and will actually help your score. Check out our top picks for 2022 before you start doing some research to see which one will better meet your needs. 

1. Ovation Credit Services

This is an old tried and tested member of the credit repair companies category. It’s been around for 45 years and already has a reputation of trust and great customer service. Not only is it efficient, but Ovation Credit Services have cost-effective options to allow anyone to get better scores. 

The Ovation Credit Services usually charges monthly, with its cheapest service starting at $79 a month. You’ll also have to pay a one time set-up fee and can add extra services to your package for $30 a month. 

For beginners, the company offers a free consultation that helps you choose your package and services. 

2. Credit Saint

Here we have another old example among the credit repair companies. It has existed for more than 17 years and has a solid reputation. Even if you do find complaints online, you’ll be sure that this isn’t a fraud or identity theft scheme. 

When you sign up for Credit Saint, you’ll have to choose between three different packages starting at $79 a month with a $99 set-up fee. You’ll also have access to a 90 months money back guarantee in case you’re not satisfied with the results. 

3. Lexington Law

After 15 years in operation, this became a well-known and trustworthy credit repair company. There are three service packages that allow users to start rebuilding their credit score on a few specific areas: 

  • Credit report analysis; 
  • Credit disputing; 
  • Dispute escalating; 
  • Credit report analysis and monitoring. 

The best part is that you won’t have to pay a set up fee and charges start at $95,95. There are also some discounts and offers that you could find. 

4. The Credit Pros

Unlike the previous tips, this is an AI driven platform that allows you to manage and fix your credit report. You won’t have to pay any additional fees for credit monitoring, which is great in case you’ve been a victim of identity theft or would just like to keep up with the work that’s happening. 

You can also get a free consultation before you start to understand how the credit repair works and which is the best package for you. There’s a 90 days money back guarantee that keeps you protected even if the job doesn’t satisfy you.

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