Credit repair fees can vary significantly in regards to someone’s current credit score and how many issues may be present on their credit report. Luckily, reputable credit repair companies like The Phenix Group offer free credit reports and consultations so that you can be sure you’re getting the guidance you need ahead of time.
In this article, we’ve broken down the credit repair lawyer cost, as well as how to save your money from scammers.
What Is Credit Repair?
Credit repair is the process of removing inaccurate, damaging information from your credit reports. You can take steps to repair your credit for free or hire a company to help you.
Credit repair usually involves reviewing your reports for inaccurate information, such as missing or late payments you believe you made on time, or any listed accounts you don’t recognize, which may indicate identity theft. Such inaccuracies can negatively impact your credit, so it’s important to challenge them to repair your credit.
Keep in mind that if the information on your credit report is accurate, you cannot challenge it, even if it’s damaging. You will likely have to wait until enough time has passed and that information is no longer reflected in your credit report to see your credit score rise.
Why Is Repairing Credit Important?
Your credit report and credit history are essential factors in determining whether you qualify for credit in the future and what interest rates you are offered. Regularly monitoring your credit can help ensure that it is accurate and allow you to challenge any inaccuracies swiftly if you spot them.
Can You Pay to Repair Credit?
You can hire professional credit repair companies to develop a plan and dispute inaccurate information on your behalf. However, it’s important to remember that a credit repair company cannot magically give you a good credit score. They can only assist you in disputing inaccurate information and removing errors, which can improve your score. Any accurate information cannot be removed from your report, even with the assistance of a credit repair company.
How Much Do Credit Repair Companies Charge?
Credit repair companies typically charge in one of two ways–some companies follow a pay-per-delete model, charging a fee for each error they remove from your credit report. Most companies, however, follow a subscription-based model.
These charges range from around $50 to $150 a month, depending on the specific package and company you’ve chosen. In a subscription-based model, you’ll also be required to pay a one-time startup fee, typically the same price as the monthly subscription fee.
Credit repair services sometimes also come in tiered packages, with additional services (such as credit monitoring or access to credit scores) if you opt for a higher-tier package. These packages can range from $100 to $180 a month.
When selecting a credit repair company, be sure to read the fine print to learn about any additional fees (such as the startup fee) which will be included in your bill to avoid any last-minute surprises.
Spotting Credit Repair Scams
While there are many legitimate credit repair companies that can assist you in repairing your credit, the industry also attracts a lot of scam artists. Here are some red flags to watch out for when hiring a service:
- They refuse or avoid explaining your legal rights to you.
- They promise to remove all negative information from your credit report. Remember, only inaccurate information can legally be challenged and removed, so any credit company making lofty promises about removing all disadvantageous information is likely illegitimate.
- They advise you against contacting credit bureaus. Contacting credit bureaus to dispute inaccurate information is an essential step in the credit repair process. If a so-called credit repair company stops you from doing this, they are probably hiding something.
- They pressure you to pay upfront. You should be wary if they demand you pay them before any services have been performed (not including set-up or enrollment fees).
Final Thoughts
Starting your credit repair journey can be an overwhelming and time-consuming process. If you feel unable to navigate this process alone, a professional credit repair company can assist you in challenging inaccurate information and improving your score. Just remember to connect with a trustworthy, reliable credit repair company like The Phenix Group to protect yourself from scam services looking to take advantage of your vulnerable situation.
For more helpful financial advice, be sure to check out our posts on which credit report you should get and what a fair credit score is!