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Credit Repair: What You Need to Know

What Is a Credit Repair Company?

A credit repair company is a third-party organization that aims to remove inaccurate and unverifiable information from your credit reports in exchange for payment. These companies may also offer services such as credit assessment, credit monitoring, communicating with creditors, identity theft monitoring, credit building tools, and educational resources.

However, it’s important to note that the Credit Repair Organizations Act (CROA) has strict rules on what these companies can and cannot do. They cannot remove accurate credit report information, advise customers to make false statements, or charge fees for services not yet rendered.

How Much Does Credit Repair Cost?

The cost of credit repair services can vary. You might pay anywhere from $50 to $150 per month for a subscription service, which may also include a setup fee of up to $200. Alternatively, some companies charge per deleted tradeline, with costs ranging from $25 to $100 depending on the item.

Should You Use a Credit Repair Company?

For most people, hiring a credit repair company may not be the best option. The services can be costly, and there’s no guarantee that they can remove accurate negative information from your credit reports. Additionally, some credit repair services are scams, making it difficult to know who to trust.

If you’re overwhelmed with your credit situation, consider getting a free consultation with a credit counselor who can advise you on how to deal with debt and improve your credit.

How to Fix Your Credit Yourself for Free

Before considering a credit repair company, here are some steps you can take to repair your credit on your own:

• Review your credit reports: Check your credit reports for any unfamiliar items. You can get free access to your FICO® Score and Experian credit report, and request a free weekly credit report from Equifax and TransUnion through AnnualCreditReport.com.
• File a dispute: Submit a dispute of inaccurate information online, by phone, or via mail. Provide your identity verification, reason, and supporting documentation.
• Wait for a resolution: Credit bureaus typically resolve disputes within 30 to 45 days. If the negative item is confirmed to be inaccurate, it will be corrected or deleted. If verified as accurate, it will remain on your reports.
• Take other steps to improve credit: Pay all your bills on time, pay down credit card balances, and avoid unnecessary credit applications.

The Bottom Line

Reputable credit repair companies can offer legitimate services, but their costs can add up, especially if it takes several months to achieve your goals. Remember, you can do anything a credit repair organization can do for free.

Before you consider working with a credit repair company, learn how to understand your credit report and take steps to fix your credit on your own.

For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. We’re here to help you navigate your financial journey with ease and confidence.

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