Credit repair companies are a viable option if you are unable to qualify for a credit card. However, it is not mandatory, and you can undertake the steps on your own. Consumers can challenge errors in their credit score, and this procedure does not involve any agency.
Credit repair companies are organizations that take the burden to review and fix your credit score for a cost.
They differ from credit counseling agencies which are non-profit agencies that review your finances and credits to help you navigate expenses and improve money management.
Expenses of Credit Repair Companies
Credit repair companies have a profit-driven business model. They render financial repair services for your credit report or scores in exchange for a fee.
While specific companies charge an initial fee meant for securing their time and services, others cost an extra charge between $75 and $350 for each deletion. Miscellaneous expenses involve setup fees or access fees as well.
Some companies offer a subscription model. The consumer can request the company’s services 30 days after the date of initiation.
Companies can charge you by the month, around $50 to $150.
The expenses for credit repair services can reach hundreds and thousands of dollars.
The companies cannot guarantee the removal of negative reviews from your credit report. If any company is offering assured removal, they are in direct violation of CROA.
The Credit Repair Organizations Act (CROA) regulates their activities and transactions.
While your payment does not guarantee a successful repair or removal, any success costs you an additional amount.
Why Are Legal Plans Better?
Legal plans are an ideal alternative to resolving issues with the credit bureau. You receive extensive coverage and experienced lawyers at your service for a minimal premium.
You can retain your plan monthly or through a one-time payment.
Legal plans eliminate the need for credit repair companies and are more affordable.
You also receive customer support around the clock and can connect with a lawyer out-of-town.
Legal plans approach to credit repair involves mailing a dispute letter to the credit bureau, online and at no extra cost.
Financial advisors also recommend saving the money you would spend and diverting it to credit obligations and any outstanding you may have.
Paying off debts is a preferred option for hiring a credit repair company.
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