When was the last time you checked your credit score?
Credit scores are like a digital report card of how well you’ve been keeping up at managing your debt over time.
Think back to the last time that you applied for a/an:
- Auto loan
- Credit card
- Personal loan
Were you declined or only qualified for a ridiculously high-interest rate because your credit score was too low?
If that was the case, there is a way to boost your credit score with a credit repair company.
Sneak Peek: Best Credit Repair Companies
Highest Rated Credit Repair Company: Credit Saint
Most Experienced Credit Repair Company: Lexington Law
Best Credit Repair App: CreditRepair.com
Best DIY Credit Builder: Self
What is Credit Repair?
Credit repair is when you or a credit repair company you hire reviews your credit situation by analyzing your credit report, reviewing discrepancies, and filing disputes to remove errors.
The goal of repairing your credit is to boost your credit score, which in turn could help you save money, especially when it comes to big-ticket purchases (like a home or a car).
What do Credit Repair Companies do?
Credit repair companies work on your behalf to negotiate with your creditors (your lenders) and to work with the 3 credit agencies (TransUnion, Equifax, and Experian).
Credit repair companies boost your credit in several ways, including:
- Reviewing your credit report
- Negotiating with credit agencies
- Disputing errors on your credit report
- Advocating for the removal of errors on your credit report
Some of the items the credit repair companies remove on your credit report include:
- Liens
- Bankruptcies
- Late payments
- Debt collections
Why should you consider a credit repair company?
Repairing credit by yourself can be:
- Stressful
- Confusing
- Time-consuming
Credit repair companies can save you the hassle and they know exactly what to look for to help you improve your credit score or fix inaccuracies on your credit report.
Although credit repair companies may cost you a little bit of money (I’ll discuss the costs below), the expense may be well worth it, to maintain your sanity!
Let’s jump in.
Best Credit Repair Companies for 2023
Although the credit repair industry does face its fair share of credit repair scams, the companies I mention below are certainly worth considering, based on their fees, customer reviews, success rates, and much more.
Highest Rated Credit Repair Company: Credit Saint
Credit Saint is an established company with award-winning customer service. The Better Business Bureau (BBB) awarded Credit Saint an A+ rating.
The firm is an experienced player in the industry, having provided credit restoration services for more than 15 years.
Credit Saint offers the following:
- A+ BBB Rating
- Online Account Page
- Flexible Cancellation Policy
- Excellent Online Transparency
- 90-Day Money-Back Guarantee
- Award-Winning Customer Service
Let’s take a closer look at some additional Credit Saint statistics, below.
| Credit Saint | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Money-Back Guarantee |
90 days |
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BBB Rating |
A+ |
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Monthly Cost |
$79.99 to $119.99 |
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Years in Business |
16 |
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Free Credit Consultation |
Yes |
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Customer Service |
- Phone |
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Credit Saint offers 3 packages for you to choose from.
The first package is known as the Credit Polish.
| Package 1 | Credit Polish |
|---|---|
|
Cost |
$79.99 per month |
|
What it offers |
|
The second package is known as the Credit Remodel.
| Package 2 | Credit Remodel |
|---|---|
|
Cost |
$99.99 per month |
|
What it offers |
|
The highest tier package is known as the Clean Slate.
| Package 3 | Clean Slate |
|---|---|
|
Cost |
$119.99 per month |
|
What it offers |
|
Ultimately, Credit Saint certainly is one of the best credit repair companies for 2023.
Most Experienced Credit Repair Company: Lexington Law
If you’re looking for top-notch credit repair specialists to work on your behalf, then Lexington Law could be your best bet.
Lexington Law offers the following:
- Customized support
- 24/7 credit monitoring service
- Employs attorneys and paralegals
- Credit education on their website and blog
- Prolonged customer service hours for 7 days a week
Lexington Law is especially effective if your credit has been negatively impacted by the following:
- Divorce
- Medical bills
- Student debt
- Identity theft
- Military service
Let’s take a closer look at some additional Lexington Law statistics, below.
| Lexington Law | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Average client employs Lexington Law for |
6 Months |
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BBB Rating |
Not BBB Accredited |
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Monthly Cost |
$89.95 to $129.95 |
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Years in Business |
27 |
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Money-Back Guarantee |
Yes |
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Credit Reports |
$14.99 |
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|
Customer Service |
- Extended Hours |
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Lexington Law offers 3 packages for you to choose from.
The first package is known as the Concord Standard.
| Package 1 | Concord Standard |
|---|---|
|
Cost |
$89.85 per month |
|
What it offers |
|
The next package is known as the Concord Premier.
| Package 2 | Concord Premier |
|---|---|
|
Cost |
$109.95 per month |
|
What it offers |
|
The all-inclusive package is known as the Premier Plus.
| Package 3 | Premier Plus |
|---|---|
|
Cost |
$129.95 per month |
|
What it offers |
|
Lexington Law is a good option for those of you who want a professional, guiding hand to help you navigate the obstacles of repairing your credit.
Best Credit Repair App: CreditRepair.com
If you’re looking for one of the best credit repair companies and apps out there, creditrepair.com might be the choice for you.
CreditRepair.com offers the following:
- Mobile app
- Credit score tracker
- Text and email alerts
- Personal online dashboard
- TransUnion credit monitoring
- Member Services for 6 days a week, extended hours
CreditRepair.com is especially effective if your credit has been negatively impacted by unfair, inaccurate or unverified items, such as the following:
- Judgments
- Collections
- Bankruptcies
- Foreclosures
- Late payments
- Repossessions
Compared to Lexington Law, CreditRepair.com’s services are not as extensive, however, the services themselves are 100% dedicated to improving your credit score.
Let’s take a closer look at some additional CreditRepair.com statistics, below.
| CreditRepair.com | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Average client employs Lexington Law for |
4-6 Months |
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BBB Rating |
Not BBB Accredited |
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Monthly Cost |
$69.95 to $119.95 |
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Years in Business |
8 |
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Credit Reports |
$14.99 |
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Customer Service |
24/7 |
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CreditRepair.com offers 3 packages for you to choose from.
The first package is known as the Direct.
| Package 1 | Direct |
|---|---|
|
Cost |
$69.95 per month |
|
What it offers |
|
The second package is known as the Standard.
| Package 2 | Standard |
|---|---|
|
Cost |
$99.95 per month |
|
What it offers |
|
The highest tier package is known as the Advanced.
| Package 3 | Advanced |
|---|---|
|
Cost |
$119.95 per month |
|
What it offers |
|
After signing up with CreditRepair.com, expect a company representative to contact you within 48 hours to schedule a time to review your credit situation.
From there, the representative along with a team, will determine how to best move forward with your situation.
CreditRepair.com claims their average member has increased their credit score by about 40 points on the TransUnion credit score within 4 months of signing up.
What to Know Before Signing up to a Credit Repair Company
Before you sign up to use a credit repair company’s services, there are some things you should be cognizant of.
It’s also important to understand exactly how credit repair companies work.
How do Credit Repair Agencies Work?
Although each credit repair company is different and processes clients on their own terms, typically speaking, they employ a 4-step process, which I’ve outlined below:
- Free Consultation
- Establish Power of Attorney to act on your Behalf
- Challenge items with creditors and credit bureaus
- Progress report is sent to you with review of changes and updates
Take a look at the picture below to help you visualize this process.
Always make sure you do your research and come prepared to your first meeting with a credit repair company.
Do Credit Repair Companies Really Work?
Legal credit repair companies can help improve your credit score by negotiating on your behalf and removing errors from your credit report which could have a damaging effect on your credit score.
Before you release your personal information (such as your social security number, address, financial records, etc.) there are some steps you can pursue to ensure that you are working with a legit credit repair company.
Some of these steps include:
- Make a list of the established credit repair companies
- Research the ratings with the Better Business Bureau (if applicable)
- Interview each company and ask them additional, thought-out questions
- Research customer reviews and complaints using the Consumer Financial Protection Bureau databank
Take your time before you commit to a credit repair company. Don’t let them push you.
How much does it cost to get Credit Repair?
Typically speaking, you will have to pay a one-time set-up fee (which can range between $20 to $150) plus a monthly fee to hire a credit repair company.
The monthly fees can range between $70 per month to $130 per month, and the process itself may take between 4 to 12 months or more, depending on your personal situation.
It is possible to repair your credit by yourself, too – at no cost.
Can I Repair My Own Credit?
You don’t necessarily need to hire a credit repair company to help fix and increase your credit score.
There is a generic four-step process that you can implement to repair your credit by yourself.
How to repair your credit by yourself:
- Review your credit report
- Dispute any incorrect information
- Hire a credit repair company if necessary
- Continue reviewing your credit report regularly
You can also use credit builder programs like Self to boost your credit score on your own terms, for much less money.
Once you have repaired your own credit, it’s also important to maintain your credit, and I’ve detailed some steps below for you to follow.
How to build and maintain good credit:
- Pay on time
- Pay off your debt
- Set-up auto payments
- Lower your credit utilization ratio
- Apply for new credit only when you need it
Just keep in mind to stay consistent with your plan.
How to Boost your Credit Score by Yourself
It might be challenging to even qualify for a credit card or a loan if you:
- Have no credit
- Have dismal credit
If that’s the case, then I may have the best workaround option for you with what is known as a credit-builder loan from Self, formerly known as Self Lender.
Here’s how a credit builder loan typically works:
- You take out a “loan”
- The loan is not immediately deposited into your account
- Instead, the loan is held in an FDIC insured CD, in your name
- You make regular, monthly, and full payments to unlock the loan
After you’ve made all payments for the loan, the money held in the FDIC insured CD then is released to you.
Credit Builder loans, such as those offered through Self help you:
- Establish a solid payment history
- Establish your credibility to make regular and full payments
- Help boost your credit score, as transactions are reported to the credit bureaus
Check out some additional information below:
| Self Facts | Examples |
|---|---|
|
Loan Amounts |
$600 to $1,800 |
|
Cost |
$9 administrative fee |
|
Credit Check Required? |
No |
|
Reporting |
3 credit bureaus: |
|
Loan Term |
1 to 2 years |
|
Availability |
50 states |
|
Penalties |
Penalties apply for late payments of 15 or more days late: |
|
Can you pay back your loan early? |
Yes, if you have a good credit score and are looking to start applications for loans and/or credit cards |
Below are some basic rules you should keep in mind before you apply to Self for a credit builder loan:
- Must be 18 years or older
- Must be a permanent US resident
- Must have a valid social security number
- Must have a bank account, debit card or prepaid card
- Must NOT have bounced checks, unpaid fees, etc. within the last 180 days
You can choose your monthly payment, which can range from:
- $25 per month to $150 per month
If you do decide to utilize Self’s potential credit building services, then it’s very important to understand that you should under no circumstance default on your payments.
If you default on your payments, then your credit score will likely be damaged even further.
Why is it important to have a good credit score?
A good credit score comes with many benefits – which means, you can save $100s if not $1,000s by receiving favorable terms such as lower interest rates or access to better, cash-saving credit cards, for instance.
Below are some benefits of a good credit score:
- Lower car insurance cost
- Lower car loan interest rate
- Increased negotiating power
- Lower mortgage interest rates
- Easier approval to own homes
- Lower credit card interest rates
- Easier approval to rent apartments
- Utility contracts may forgo security deposit
- Cell phone contracts may forgo security deposit
- Easier approval for increased borrowing capacity
As you can see, there are so many reasons why you would want to build and maintain a good credit score.
What is a Good Credit Score?
Your credit score is most often determined by your FICO® score.
The typical credit score ranges from 300 (which you don’t want) to 850 (which is the best).
Below is a visual of the typical FICO® scores:
Typically speaking, a good credit score to aim for is around 670 to 739.
Now, here’s a statistic to give you an idea of where the majority of Americans fall with their credit scores:
Image: The Millennial Money Woman | Source: Experian
As I’m sure you can imagine, there are a few factors that come into play when determining the health (or lack thereof) of your FICO® score.
What Determines your FICO® Credit Score?
There are 5 main categories that play an important role in determining your FICO® score.
The higher the percentage of each category, the more of a role the category plays in determining your credit score.
Image: The Millennial Money Woman | Source: myFICO
What I find is that most young professionals struggle to master the payment history category (worth 35% of your FICO® score), because young professionals typically lack the number of years of open credit.
How to Check your Credit Report
If you’re like I was when I was in my early 20’s, you may have never checked your credit score. And that’s ok!
But today is the time to change your trajectory.
I’d recommend downloading your credit report ASAP to get an idea of where you stand currently – and what you have to do in order to improve your situation (if necessary).
You’re eligible for 1 free annual credit report, however, you can also review your credit report multiple times throughout the year (which is typically recommended).
TransUnion is one of the 3 (and in my opinion one of the best) credit reporting agencies.
If you sign up to TransUnion’s services, you’ll receive some of the following benefits to help you stay on track with your credit score:
- Customized debt analysis
- Daily credit report updates
- Unlimited credit score/report access
- Up to $1,000,000 in ID theft insurance
- Unlimited access to ID theft specialists
- Ability to lock and unlock your credit reports
- Email updates for critical changes to your credit report
- Immediate email notification in the case of identity theft
There are a lot of benefits that go along with this type of service, which costs $24.95 per month plus taxes, when applicable.
In my opinion, it only makes sense to purchase a service like this if you’re actually going to use it (obviously).
For example:
- If you’re in a tough credit situation
- If you just went through a separation
- If you are worried about identity theft
- If you’re trying to build up your credit
…Then considering this credit monitoring, and to a point credit protection, service by TransUnion may be a good investment – at least for the short term.
Depending on your credit situation, you may have to implement more severe measures like hiring credit repair companies.
How long does it take to Rebuild Credit?
Although there is no set-in-stone timeframe for how long it will take to repair your credit, you could expect your credit score to improve anywhere from 30 days to several months.
The amount of time it takes to rebuild your credit will largely depend on:
- When the negative event occurred
- The type of negative information on your credit report
Even though there is no proven formula to rebuild your credit, the earlier you start working to rebuild your credit, the better.
How long does Negative Information stay on your Credit Report?
Typically speaking, negative information will stay on your credit report for up to 7 years.
Bankruptcy can last up to 10 years on your credit report.
Take a look at the infographic, below.
The benefit to hiring credit repair companies is that you have professionals working on your behalf, who know exactly what to look for and what to do to repair your credit.
Closing Thoughts
Credit, it seems, is a necessary evil these days… you can’t live with it and you can’t live without it!
If your credit score is poor, then you may be:
- Rejected from personal loans
- Paying more on your mortgage
- Paying more on your car insurance
- Disqualified from top credit card offers
Living with a poor credit score costs you more money and closes some important doors for you.
Luckily, there is a way around poor credit, by hiring some of the best credit repair companies like Credit Saint.
The credit repair companies will look to:
- Fight on your behalf
- Improve your credit score
- Build your credit score over time
- Correct inaccuracies on your credit report
Credit repair companies do not make any guarantees and it could take some time to rebuild your credit – anywhere from 4 months to 12 months or more.
It all depends on the severity of your situation.
However, if you’re:
- Stressed
- Not familiar with the law
- Finding you don’t have time
- Looking to build your credit score
- Finding inaccuracies on your credit report
Then it might be time to consider hiring a credit repair service.
Although the credit repair company may cost you money in the short-term (including upfront fees and monthly fees), the credit repair company may save you $100’s if not $1,000’s in the long run.
Think about it now, act now, and your bank accounts will thank me later.
How do you plan to improve your credit score?
