What Do Credit Repair Companies Do And What Are The Best Credit Repair Companies In 2023?

Mistakes on your credit report are more common than you might think. Did you know that, according to a 2021 study, 34% of Americans found an error on theirs? And while you can take steps to remove these errors yourself, the process can be frustrating.

That’s why many people choose to hire credit repair companies. A credit repair company can clean up your credit report for you, saving you tons of time in the process. But, you’ll want to do your research and make sure you work with the right one.

What Are Credit Repair Companies?

If you’re looking to buy a home, your credit score will be a crucial factor influencing the rates and terms you receive. So, if your credit score is lower than you’d like, a credit repair company can help you clean it up.

A credit repair company is a third-party service that contacts the credit reporting bureaus on your behalf. In exchange for a fee, the company will remove inaccurate or negative information and help you improve your credit score over time.

Of course, you have the legal right to dispute any incorrect information on your credit report yourself. But many people may find this task overwhelming and look to a credit repair company for help.

How Does Credit Repair Work?

A credit repair company starts by ordering a copy of your credit report from Experian^®, Equifax™ and TransUnion^®. They’ll evaluate your report for inaccurate or damaging information.

However, it’s essential to understand that while credit repair companies can help correct errors in your credit report, they can’t legally make untrue claims on your behalf. If the company offers something along those lines, it’s wise to run in the opposite direction.

Once the company has reviewed your credit report, they’ll reach out either to the credit bureaus or data furnishers who supplied the information. In addition to credit repair, many of these companies offer credit monitoring services to reduce identity theft.

How Can Credit Fixers Repair Your Credit Score?

There are no quick fixes for building or repairing your credit. So, you should avoid any company that promises immediate results.

Reputable companies start by reviewing your credit report for negative or inaccurate items. From there, the company reaches out to the credit bureaus and data furnishers to challenge certain items found on your report.

In addition, credit repair companies may recommend ways you can begin improving your credit. While there’s nothing credit repair companies can do that you can’t do for yourself, there’s also nothing wrong with paying a third party to perform the task for you.

5 Best Credit Repair Companies In 2023

If you’re interested in hiring a credit repair company to fix errors on your credit report, you’ll have several to choose from. Let’s look at some of the top credit repair companies in the business.  

1. Lexington Law

Lexington Law is a leader in the credit restoration industry. For over a decade, the law firm has helped consumers identify and remove errors on their credit report. They offer four credit repair packages, listed from least to most expensive: Lexington Essentials, Concord Standard, Concord Premium and Premier Plus.

The packages range in price from $59.95 a month to $139.95, plus taxes and fees. While the pricier packages have more credit repair features, most packages include:

• Credit bureau challenges and disputes 
• Creditor interventions
• Inquiry assist, which includes prepared letters to challenge incorrect hard inquiries on your credit report
• Identity theft insurance
• Debt handler, or educational materials on debt management strategies

Lexington Law also offers services to help consumers repair their credit after it’s been hurt by any negative items. They offer programs for credit repairs related to student loans, divorce, identity theft, medical debt and more.

2. Credit Saint

Credit Saint is a New Jersey-based credit repair company with over 15 years of experience in the industry. They have three credit restoration packages for customers:

• Credit Polish ($79.99/month): This package challenges the credit bureaus for five errors on your credit report per dispute cycle. Other features include Score Analysis, Creditor Interventions and Score Tracker.
• Credit Remodel ($99.99/month): The Credit Remodel package challenges up to 10 credit report inaccuracies per dispute cycle. It includes the same features as Credit Polish, with the addition of the Inquiry Targeting tool.
• Clean Slate ($119.99/month): This package includes all the features of Credit Polish and Credit Remodel, plus unlimited challenges to the three credit bureaus on credit report errors.

In the event that inaccuracies aren’t removed from your credit report, Credit Saint provides a 90-day money-back guarantee.

3. Ovation Credit Services

Ovation Credit Services is known for its quality customer service and comprehensive credit restoration options. They offer a free credit consultation, plus 24/7 access to credit repair tools and information. Ovation offers two credit restoration packages for consumers to choose from, depending on their needs.

The Essentials Plan helps you dispute every error on your credit report. This plan also provides access to a range of financial tools that can help with budgeting, paying off debt, and more. You’ll also work with a team of Care Advisors who’ll help you through the process. The Essentials Plan costs $79 a month, plus an $89 first-work fee.

The Essentials Plus Plan includes all the components of the Essentials Plan, plus a few other features that can help during the credit restoration process. Some of the additional features include access to creditor letter templates, a personalized Ovation recommendation letter and TransUnion® credit monitoring. This package requires a $109 monthly fee, plus an $89 first-work fee.

Ovation Credit Services provides several discounts to potential customers as well. They offer a 10% discount for military members and seniors, a 20% couples discount and a $30 to $50 credit for new client referrals from existing customers.

4. Sky Blue Credit

Sky Blue Credit has been a leader in the credit restoration business since 1989. They provide best-in-class customer service and an array of credit repair services to help address and remove inaccuracies on your credit report. Some of the services they offer include:

• Pro Analysis: Sky Blue Credit finds even the most minor disputes that can be affecting your credit score.
• Faster Custom Disputes: Sky Blue Credit offers a 35-day dispute cycle and sends customized dispute letters to the credit bureaus.
• Score Assistance and Credit Rebuilding: They offer assistance to help clients rebuild and improve their credit score over time.
• Extra services: Sky Blue Credit provides additional services at no extra charge. These optional services include debt validation, goodwill letters, cease and desist letters, inquiry disputes and a free identity theft consultation.

To become a member, Sky Blue Credit charges $0 at sign-up. After 6 days, members will pay a $79 review and setup fee, and going forward, you’ll pay a monthly fee of $79. You can cancel your membership at any time.

5. The Credit Pros

The Credit Pros are dedicated to helping their clients lead healthy financial lives. They provide a number of services to help consumers identify inaccurate credit items. They also offer inquiries that can boost credit score, and they have several educational tools to help clients better understand their credit history and score.

The Credit Pros offer three comprehensive plans:

• Money Management plan ($69/month): This package has a credit report and score from one credit bureau, ID Cover® Darkweb monitoring, TransUnion® alerts, a budgeting system, and more.
• Prosperity plan ($119/month): This plan includes all of the features of the Money Management option, plus challenges to all three credit bureaus, creditor interventions, cease and desist letters, a letter of reference, and more.
• Success Plus plan ($149/month): The Success Plus plan includes all the components of the first two packages, plus credit reports and score from all three credit bureaus.

How To Compare And Choose A Credit Repair Company

With so many options to choose from, it’s important to compare credit restoration companies before picking the one that’s right for you. Below are some tips to consider before deciding on a credit repair company.

Review The Credit Repair Services Offered

Take a look at the services and packages that different credit repair companies provide. Some packages may include basic services, while others have more comprehensive features. If a debt management strategy or identity theft protection is a priority for your situation, you may want to consider the credit repair company that offers this feature in the same payment plan. 

Evaluate Upfront And Monthly Fees

When comparing credit restoration companies, consider the upfront costs as well as monthly fees. Some companies may offer discounts to help lower your payments and save you money. Companies may offer discounts especially for active-duty military members, veterans, seniors and couples. 

Check For Money-Back Warranties

The credit restoration process isn’t guaranteed to fix your credit. So, you may want to choose a credit repair company that offers a money-back warranty in the event that errors on your credit report can’t be removed.

Read Online Reviews

Customer reviews can tell you a lot about what it’s like to work with a credit repair company. Reading reviews on reputable websites like the Better Business Bureau (BBB) can help you gauge customer satisfaction and decide whether it’s worth hiring one credit restoration company over another. 

Be Aware Of Potential Scams

When evaluating credit repair companies, watch out for a few warning signs that could indicate deceptive practices. According to the Federal Trade Commission (FTC), these companies can’t do any of the following:

Require upfront payment before they’ve done any work on your behalf

• Tell you not to contact the three major credit bureaus yourself
• Tell you to dispute fair and accurate information on your report
• Advise you to give incorrect information to the credit bureaus
• Fail to explain your legal rights to you

The FTC passed the Credit Repair Organizations Act in 1996 to regulate these companies and protect consumers from harmful behaviors. Be on the lookout for any of the above warning signs when comparing credit restoration organizations.

Do Credit Repair Companies Work?

It’s very common to find a mistake on your credit report, which is why you should check a free copy of yours at least once a year. A credit repair company will review the information on your credit report for you and look for any errors.

Assuming they find inaccurate information, the company will contact the credit bureaus on your behalf to have this information removed. The company will usually reach out by mail. Many credit repair companies will send repeated letters over a series of 30 days, challenging certain items listed on your credit report. This strategy is often successful.

Credit Restoration FAQs

Do you have more questions about repairing your credit? Read on to review some frequently asked questions.

What is considered a good credit score and why?

Your FICO^® Score will fall somewhere in a range of 300 – 850. The higher your score, the better when applying for a mortgage or other type of loan.

A higher credit score will help you earn the best rates and terms on your mortgage. And certain lenders require specific credit scores to buy a house, depending on the type of mortgage you’re looking for.

What’s the difference between credit repair and credit counseling?

Credit counseling and credit repair are two very different services. Credit counseling is financial advice specifically tailored to your situation.

In addition, a credit counselor will usually provide resources to help you make better decisions and improve your financial situation. The point of credit counseling is usually to help consumers get out of debt.

By comparison, credit repair is a service designed to improve your credit score by removing inaccurate information from your credit report. Both services help you improve your financial situation, but they go about it differently.

Can I fix my credit score myself?

Yes, you can repair your credit score on your own. Steps you may want to take to fix your credit include requesting a copy of your credit report, checking for inaccuracies and disputing any errors you find.

If you have bad credit, there are also several ways to improve your credit score by yourself. Opening a new credit card, paying off debt and maintaining a low credit utilization ratio are a few methods for raising your score over time.   

How long will it take to repair my credit score?

The amount of time it takes to raise your credit score depends on the negative event on your credit report. For example, if you max out a credit card, it can take about 3 months for your credit score to recover. But if you declare bankruptcy, it can take anywhere from 7 to 10 years for your credit to fully bounce back.

Is working with a credit repair company worth it?

If you can’t handle fixing your credit by yourself, it might be a good idea to seek the expertise of a reputable credit repair company. Take the time to compare companies and consider all your options before choosing the credit restoration company that meets your needs.

The Bottom Line: Credit Repair Takes Time – And, Sometimes, A Little Professional Help

Credit repair companies can help you by clearing your credit report of errors. Of course, you could do this yourself, but many people find it easier to have a third party do it for them.

If you’re looking for a more hands-on approach to credit monitoring, turn to Rocket Money℠. The Rocket Money app provides access to your credit report and credit history. It also sends alerts for changes that influence your credit score. The identity theft protection feature monitors your accounts and notifies you of any fraudulent activity, too.

To learn more, download the Rocket Money mobile app today.