The credit firm offers a reasonably comprehensive service for one of the lowest monthly costs on this list. Clients are assigned a credit repair specialist who is supervised by a licensed attorney. And while it's legal to hire a credit repair company to dispute credit information, paying for this service doesn't mean the information will be deleted. Monthly payments are reported to credit bureaus, which can help people improve a poor credit score.
In some cases, a credit repair organization may file the creditor's interventions with a debt collector or with the original creditor to remove the negative item from its credit history in exchange for payment of the debt. Credit repair, as an alternative, is when someone pays a third-party company to try to have negative information removed from credit reports. Instead of paying a company to send dispute letters to credit bureaus, which you can do online at no cost, you can use that money to pay any delinquent obligations, outstanding collections or credit card debts. While it might seem like a good idea to pay someone to fix your credit reports, there's nothing a credit repair company can do for you that you can't do yourself for free.
Other companies offer credit rating updates, and because your score may take a few months to update, they advise you to stay on record at all times while you pay monthly installments until you see the changes reflected in your credit report. Sky Blue Credit has a 90-day money-back guarantee, but you'll pay out of pocket to access your credit report. Because of this financial reality, people with bad credit looking for ways to improve it may consider hiring a third-party credit repair company. With full-service credit repair, you authorize the service to get your credit reports; in some cases, you pay a fee for that step.
Credit repair companies generally receive payment for their services by charging a monthly subscription fee or charging a fee each time they can remove an item from their credit report. But if you just want a better credit score and don't plan to apply for a loan or a new credit card in the near future, then paying for a high-level service is probably a stretch. Instead of paying for credit repair services, you're probably better off redirecting your efforts to more proven methods of improving your credit reports and scores. Before your credit counselor begins the credit repair process, you'll need to pay a first-time job fee that equals your monthly fee.
The cost of credit repair services is a small price to pay to hire a legitimate credit repair company that takes into account your best interests.