Credit repair companies usually charge in one of two ways, and the pricing can vary depending on the company and the services offered. One method is the “pay-per-delete” model, which only charges you for each error they successfully remove from your credit report. So, if they remove a few mistakes, you pay for each one individually. This model can be appealing if you only have a few errors to fix, but it might not be the best option if your credit report is filled with multiple issues.
However, the most common approach is subscription-based pricing. This means you’ll pay a monthly fee to the credit repair company, and they’ll work on your credit over time. Subscription fees can range from about $50 to $150 per month, depending on your chosen plan and the services included. For example, more expensive packages may offer additional features like credit monitoring, identity theft protection, or more in-depth credit counseling.
In addition to the monthly fees, many companies charge a one-time startup fee (sometimes called a first-work fee), which can be the same as your monthly payment.
Remember that credit repair companies often try to keep you signed up for several months. Some limit the number of disputes they’ll handle each month, forcing you to stay on longer if you have multiple errors on your report. Others offer features like credit score updates, but since it can take a few months to see improvements in your score, they might recommend staying subscribed until the updates are reflected.
In the end, this process can become expensive. For instance, if you pay $100 for a startup fee plus $100 a month for six months of service, you’re looking at $700 in total. And remember, this is all something you could do on your own by contacting the credit bureaus and disputing errors yourself.
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Can You Just Pay to Have Your Credit Fixed?
While it might seem tempting to think you can just pay a credit repair company to magically boost your credit score, unfortunately, that’s not how it works. Best credit repair companies can help clean up errors on your credit report, but they can’t make negative information disappear if it's accurate.
For example, if you’ve been late on multiple payments, defaulted on a loan, or carry a high balance on your credit cards relative to your available credit, and this information is correct, credit repair companies can do nothing to remove it. They focus on challenging inaccuracies, like accounts you never opened or incorrect reporting of missed payments, but they can’t alter truthful information that may hurt your score.
What Do Credit Repair Companies Actually Do?
Credit repair companies don’t handle every aspect of improving your credit. Their primary function is to help develop a personalized plan for repairing your credit and assist you in disputing any inaccuracies on your credit report. They may either guide you through the dispute process or, with your authorization, handle the disputes directly on your behalf. Some companies also bundle related services, like credit monitoring or identity theft protection, to make their offerings more attractive.
It’s important to note that credit repair companies don’t operate in every state, and their pricing structures can vary significantly. While some companies operate nationwide, others are licensed only in specific states. These companies often group their services into packages, ranging in price from $19 to $149 per month, depending on the type of assistance you’re seeking.
For instance, the more affordable plans might offer basic credit report reviews and disputes. Higher-end packages could include ongoing credit score tracking, personalized advice, and more comprehensive credit restoration efforts.
Besides monthly fees, many credit repair companies charge setup fees when you first sign up. This enrollment fee is typically around the same price as one month of service. There may also be cancellation fees if you end your contract early. Some companies may offer a money-back guarantee, but not all, so it's worth reading the fine print before committing.
If you sign up, be prepared for the process to take some time. You won’t see results overnight—correcting all the errors on your credit report often takes several months, sometimes even six months or longer. Even then, it’s possible that mistakes that have been removed could reappear on your credit report for various reasons. That’s why it’s essential to monitor your credit and challenge any mistakes that reappear, even after the repair process is supposedly finished.
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Best Credit Repair Companies
CreditCaptain
At CreditCaptain, they’ve embraced the future of credit repair by using advanced AI to give your credit report the attention it deserves. Their tech-savvy team deepens into your report to uncover issues and then crafts a personalized game plan just for you.
CreditCaptain also offers three different subscription plans to match your credit needs. The Basic Plan starts at $149 per month (or $99 if you pay annually), and it covers essential services like AI-powered credit disputes, score monitoring, and some handy educational tools. If you want a little extra, the Pro Plan is $199 per month (or $149 annually), giving you faster dispute resolution and personalized financial guidance.
For those who need the ultimate package, the Turbo Plan is $299 per month (or $199 annually). It offers top-tier support, speedier results, and hands-on management for trickier credit issues.
Credit Saint
Credit Saint has been a trusted name in credit repair since 2007, with a reputation for delivering solid results. They offer various services, like free initial consultations, dispute letters to credit bureaus, help dealing with creditors, and credit score tracking.
They offer three plans to suit different needs. The Credit Polish plan, which starts at $79.99 per month with a $99 initial fee, includes monthly disputes with the credit bureaus, credit score analysis, and a 90-day money-back guarantee if you're unsatisfied.
If you're looking for more, the Credit Remodel plan costs $109.99 per month (plus a $99 setup fee) and adds in services like targeting inquiries on your report, one free credit report and score, and a guide to building better credit habits. The Clean Slate plan is priced at $139.99 per month for the most comprehensive coverage with a $195 startup fee. It includes everything in the lower plans, plus help with more challenging issues like creditor interventions and access to all three of your credit reports and scores.
Safeport Law
If you're dealing with complex credit issues requiring legal support, Safeport Law covers you. They specialize in handling credit problems where a legal approach is necessary, whether it's addressing fraud or navigating difficult disputes that seem impossible to resolve.
Having a law firm on your side can make a big difference, especially when you're facing stubborn creditors or complicated cases. Safeport Law combines credit repair expertise with legal know-how, making it the ideal choice for cases that require extra legal muscle.
Their Credit Cleanse plan is designed for those needing a more aggressive approach. It’s priced at $129.99 per month, with a $129 initial working fee (plus any applicable sales tax). This plan focuses on quickly and efficiently tackling your credit issues, offering a direct and proactive path to credit repair.
Red Flags When Choosing a Credit Repair Service
While legitimate credit repair companies exist, the industry is also rife with scams. To protect yourself, the Consumer Financial Protection Bureau (CFPB) has highlighted key warning signs to watch for when selecting a credit repair service:
Upfront Payment Demands
- Be cautious of companies that pressure you to pay upfront before any services have been performed.
- While small setup or enrollment fees are common, demanding full payment upfront is illegal under the Credit Repair Organizations Act.
- Consider it a red flag if a company insists on a hefty fee before delivering results.
False Promises to Remove Any Negative Information
- Legitimate companies can only remove incorrect information from your credit report.
- If a company promises to remove accurate negative marks (like missed payments, defaults, or high balances), they're likely misleading you.
- Remember, only erroneous information can be legally removed from your report.
Discouraging Contact With Credit Bureaus
- A key part of the credit repair process involves disputing errors directly with the credit bureaus.
- If a company advises against contacting the bureaus yourself, this could be a warning sign of shady practices.
- Legitimate services should encourage or assist you in contacting the bureaus to dispute errors.
Frequently Asked Questions (FAQs)
Why Is Repairing Your Credit Important?
Your credit history and the credit scores derived from it are important factors in whether you qualify for credit in the future and at what interest rate. With better credit, you can get lower interest rates and save money in the long term. Monitoring your credit reports periodically can help ensure they are accurate and allow you to challenge any damaging errors you find.
Is Paying Someone to Repair Your Credit Worth It?
Paying someone to fix your credit may not be worth it because you can typically take steps to repair your credit for free. And even if you do hire a reputable credit repair company, you'll still have to do some of the work yourself. You have the legal right to dispute information on your credit reports if you don't think it is correct.
Can Credit Repair Companies Remove Any Negative Marks?
No, a credit repair company can't promise to remove negative marks.
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The Bottom Line
Repairing your credit doesn't have to cost you anything. You can handle the process by following the step-by-step instructions on the three major credit bureaus' websites. If you want help, you can hire a credit repair company to assist you. They generally charge anywhere from $19 to $149 monthly for their services.
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