Having all of your bad credit listings removed from your credit file sounds appealing, but is the process worth the cost?
Credit repair is the process of removing incorrect and inaccurate information from your credit file. If you're wondering why credit repair companies say they can remove default or credit enquiry listings that aren't complete mistakes, it's because the law that surrounds credit files is extremely complicated, and mistakes are sometimes made by credit providers when listing this information.
Credit repair companies investigate these listings for a fee and "repair" your credit. However, the process is extremely expensive and results are never guaranteed. Find out the benefits and drawbacks below so you can make your own decision.
How does credit repair work?
Each credit repair company works differently, but generally, it will start with an initial consultation to see if you are a good candidate for the process. If the company is reputable it should charge no fee for this consultation and it should not take you on as a customer if it doesn't think the process will work for you.
Following this, your credit file will be checked and you may be charged a fee. Then, the company will advise which specific listings it may be able to remove for you. You will agree which listings you want to be investigated. A fee will be charged for each listing that is investigated and a separate fee will be charged for each listing the company successfully removes.
How can I check the reputability of the company?
- See if there are any review available for the company online
- Check for legitimate customer testimonials listed on the company's website
- Confirm any credit licence numbers or company numbers the company has listed
- Ask for a list of fees upfront
- Credit repair companies should only take you on as a client if they think they can remove one or more of your listings, so ask how this will be done
Is credit repair worth it?
Now you understand how credit repair works, this is really a question you need to ask yourself. Keep the following points in mind when determining the best course of action to take:
- How many bad credit listings do you have on your credit file? You will need to pay a fee to have each listing investigate and removed, so the more listings you have the more expensive it will be.
- Have you tried DIY credit repair? Contact your credit providers to see if the listing was a mistake or pay your debt if you have a serious credit infringement listed on your file.
- When is the debt due to come off your file? If it's due to come off soon you may want to wait rather than pay to have it removed. Check your credit report for free with finder (follow the link below) to see when everything was listed.