Credit repair is possible in a number of cases, but are you aware of the costs involved?
If you suffer from poor credit history, credit repair can be a worthwhile way to improve your credit rating in the event that you’d like to apply for another kind of credit or even a new job in the future. Both having a bad credit history and repairing it comes at a cost, though. There are a few things you’ll need to consider before you try to tackle your credit repair. As there are a lot of steps involved, seeking professional help could be a valuable idea. Here we discuss your options and explain how much it will cost.
How much will it cost to repair my credit history?
Costs vary between credit repair providers. Generally, you will need to pay an initial consultation fee which can cost up to a few hundred dollars. There will then be a fee charged for each listing the company successful removes. This varies as well but is also a couple of hundred dollars. Make sure you get a full list of the fees and charges before you agree to pay for the initial consultation.
What will impact the cost?
When it comes to pricing, credit repair companies function like most other businesses and charge their clients differently based on individual requirements. Factors that impact costing include the following:
- Defaults. The defaults you have on your credit file have an effect on how much you have to spend. This is because credit repair companies in Australia charge a fee for each mark they work in removing. So, the higher the number of defaults, the higher the cost.
- Successful negotiations. After each successful negotiation that the credit repair company carries out to remove a negative listing, you’ll be charged a fee to ensure the mark is successfully removed.
- Court judgements. Court judgements can have a considerable effect on your ability to get credit, and a credit repair company, for a price, can work in removing the same from your credit file.
- Crossed or linked credit files. In case you’re the victim of crossed or linked credit files because of how certain lenders submit credit data, you can expect a credit repair company to address this aspect, again, for a fee.
Can I repair my own credit rating?
Yes, it is possible. The first step is ordering a copy of your credit report and identifying the negative/incorrect listings. Then you just need to contact the credit providers that listed them on there. You can order your free credit report with finder.
If you do want professional assistance, you also have that option.
What are the benefits of working with a credit repair company?
Choosing a good credit repair company is important, and as long as you’re working with a company you can depend on, you can look forward to the following benefits:
- Professional service. Credit repair companies work to repair people’s credit reports for a living, so they know just what to look for and who to get in touch with to remove negative marks. Their professional experience is more likely to produce a thorough result than if you were to attempt to repair it yourself.
- No need for collateral. Applying for a loan with bad credit history might require that you provide some kind of collateral, and when a credit repair company is through fixing your credit file, you no longer have to worry about this requirement.
- Access to credit. In some scenarios, people might not qualify for any kind of credit owing to what’s on their credit files, and repairing your credit file in such a situation opens up borrowing doors for you once again.
While the costs will vary between different cardholders, credit repair does come at a cost. However, if you decide to get your credit repaired professionally, the benefits it will have to your finances will outweigh the fees in the long run. See our guide on how to repair your credit file for more tips and tricks for getting your finances back on track.
Frequently asked questions