Your credit score is an integral aspect of your financial health. You can take years to build a good credit score but damage it in a few minutes. Living with bad credit can be challenging. Any negative information on your credit report can stay on your credit report for seven to ten years. This period can seem never-ending, especially when negative information hurts your chances of getting a loan.
Fortunately, there are several ways you can repair your credit to revive your credit score. You might decide to use credit repair software, do it yourself, or use a credit repair company. Now, you might be wondering how much repairing your credit would cost.
In this article, we’ll explore the cost of repairing your credit, explain how credit repair works, and answer the question, “how long does credit repair take?”
What Does Credit Repair Mean
Credit repair involves improving your credit scores and reports. This process checks your credit report for errors and works to fix them. You hire a company to fix your bad credit, forcing companies to obey the law and remove questionable information from your credit report.
The primary purpose of a credit repair is to boost your credit score. You’ll get better credit card and loan interest rates with a good credit score. A good credit score will also make you appear more trustworthy to loan lenders and increase your chances of getting financing.
Credit repair is essential to save money on credit cards and loans. But saving money on loans and credit cards is not the only reason you need to repair your credit. A good credit score can increase your chances of getting a job by showing your potential employer you are financially trustworthy.
How Much Does Credit Repair Cost
The cost of repairing your credit varies depending on your debt type, the negative information on your credit report, and your circumstances. If the negative information on your credit report is daunting, you might have to pay a lot of money to a credit repair company. But if there are only a few blemishes on your credit report, you can do it yourself or use credit repair software.
Professional Credit Repair Services
You can hire a professional credit repair company if you don’t want to do it yourself or use credit repair software. This option is perfect for individuals who don’t have the patience or time to repair their credit. The cost of credit repair with a credit repair company varies. Most companies charge an initial set-up or onboarding fee of $40 to $299. They also charge a monthly cost of between $50 to $150 or more.
Some credit repair companies will charge you for every erroneous information they remove from your credit report, while others will charge you a flat fee to repair your credit. This flat fee can range between $100 to $500 or more. If you’re unsure about hiring a credit repair company because of the cost, consider the amount of error you have on your credit report. If the errors are between two or three, it’s better to do it yourself. But if there are more than three errors on your report, you might be better off getting professional help. Also, some companies offer free DIY credit repair kits, while others request a $25 fee.
Shortcomings Of Professional Credit Repair
Professional credit repair services seem like the best options at first glance, but these services have drawbacks. Using a professional credit repair company can be pretty expensive. Most people can’t afford to pay the high fees that come with these services.
Using professional credit repair services means you won’t be in control of what happens during the repair process. You have to follow everything the company tells you, even if they are false. Lastly, not all professional credit repair companies are credible. Some offer fraudulent services that take more money from you than help you.
Do It Yourself (DIY) Credit Repair
Embarking on a credit repair process can seem daunting, but you don’t have to hire a professional to fix your credit. Realistically though, there’s not much a credit repair company will do that you can’t do yourself with a DIY credit repair kit. The best thing about DIY credit repair is that it is free. The only downside of doing it yourself is the time and patience it will take you to research and implement what you’ve learned.
Aside from paying for the mail, DIY Credit repair is the most cost-effective option for individuals who are on a budget and want to increase their scores. The first thing you need to do to repair your credit yourself is to get a copy of your credit report. You are authorized to get a free copy of your credit report once in twelve months from one of the major credit reporting agencies. Carefully review your report after obtaining it for any inaccuracies or mistakes. You can dispute any negative information online or by mail.
Shortcomings of DIY Credit Repair
Yes, you can complete most of the financial processes alone. However, there are moments when the result doesn’t live up to expectations. While you can take the route of DIY credit repair, there’s a chance you might not get the desired outcome. Unless you can make dispute letters and avoid common mistakes, you might find yourself in a bind with DIY credit repair.
Credit Repair Software
Credit repair software is perfect for those who don’t have the budget to pay credit repair companies and aren’t confident about doing the credit repair on their own. There are different credit repair software types, each with its own functions and features. There are some DIY credit repair software that you can use alone and others that a professional credit repair company will provide for you.
The cheaper credit repair software will give you templates for dispute letters. The more expensive ones have tailored dispute letters for different scenarios. You’ll also have access to expert help and credit monitoring. Hence, getting the best credit repair software for professionals is advisable.
Luckily, some software can give you the perfect hybrid solution for your credit repair. CreditUp Club is an example of such. CreditUp Club offers software that acts as an advanced DIY credit repair service. The software allows you to be more in control than professional credit repair. The best part of CreditUp Club’s software is that you can get it for free.
Therefore, the fact that credit repair software has a system and professionals that work, and at the cost of DIY repair, makes it the better alternative for credit repair. This helps make funds available for other strategies for raising your credit score. Hence, if you’re looking for a hands-on, professional, and cost-effective credit repair approach, you might want to consider going for credit repair software.
How Does Credit Repair Work
Several credit repair companies claim, “we cure credit now.” But the reality is correcting erroneous information that appears on credit reports requires effort and time. A third party cannot remove the details given to credit reporting agencies. Instead, the inaccurate or misinterpreted details are disputed. If you’re using a credit repair company, they contact the credit reporting bodies or lenders to request your report. Using the information in your credit report, they devise a strategy to reduce your negative information and boost your positive ones.
Credit repair companies can dispute because of the Fair Credit Reporting Act, which says you have the right to deny any inaccurate information to the credit bureaus. Furthermore, the strategy involves writing letters to major credit bureaus disputing the negative information on your credit report. They’ll also provide supporting documentation proving the information is inaccurate.
How Long Does Credit Repair Take
There is no set time frame for how long it will take to repair your credit. The length of time for your credit repair can vary depending on how much debt you carry, how many errors you have on your credit report, and your credit type. There are several things you can do to strengthen your credit score. For example, you can open a new credit card to improve your credit utilization.
Your payment history is essential to your credit score, and you can only improve it by paying your bills on time monthly. Hence, if you consistently improve your credit score, your credit repair should not take more than a few months. However, your credit repair can also take several months to a year or more.
Are Credit Repair Services Worth It
You can decide on the type of credit repair you need based on your circumstances. Remember that you can do what most credit repair companies do. You can repair your credit yourself if you don’t use your credit score often and are not applying for a credit card or loan anytime soon. However, most companies come with decades of experience. With credit repair companies, removing harmful errors from your credit report is faster and easier.
Final Summary
If you have a bad credit report, doing a credit repair can be a worthwhile strategy to boost your credit score. As discussed earlier, the cost of credit repair can differ depending on your chosen credit repair type. Most times, it’s better to direct your energy to other methods of increasing your credit scores rather than paying for credit repair services.
Remember that credit repair doesn’t occur overnight. You have to decide fast on the method you want to use and get started on time so you can get early approvals for whatever financial product you need in the future. Moving forward, employ time-tested strategies for improving credit scores. Paying your credit card debt and paying your bills on time will improve your financial health.
At CreditUP Club, we offer a range of credit repair services for free (all you pay for is the credit monitoring). We believe all credit repair should be free. Here, you can create your first dispute letters in just a few minutes. Join our club now!
