How to Repair Credit? Do It Yourself or Apply to the Best Credit Repair Companies

“In times past, your social security number was the most influential number known to man… However, there is a three-digit number that is giving the social security number a run for its money…”

– Cornelius J., The Credit Repair Book: The Credit Repair Company’s “Secret Weapon”

how to repair credit

Have you ever thought about improving your credit score? Do you know how many benefits you may get if you finally manage to do it? 

In fact, boosting your score may result in having lower interest rates for various loans and better lending options. 

Keep in mind that this is a process that takes some time and effort, so it won’t improve overnight.

Here is everything you need to know about the best ways on how to fix your credit yourself or apply to credit repair companies.  

It can be quite challenging to repair bad credit, much tougher than start building it from scratch. Now it’s your responsibility to demonstrate and prove the creditors that you understand your previous mistakes and are willing to work your way to improve this situation and make any future payments on time. 

Jacqueline Schadeck, CFP®

Jacqueline Schadeck, CFP®

Don’t let a less than stellar credit score get you down because that can always be turned around with a little elbow grease. Remember that your credit score is ever-changing, meaning that you will want to develop and maintain good financial habits to show a good credit score; paying bills on time, not maxing out your cards and not taking on excessive debt.

Before you decided to start repairing your credit score, it’s necessary to review a free copy of the annual credit report and div out what your current score is.

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What Is a Credit Repair?

The average FICO score hit the new high and turned out to be 704 in 2018, according to the recent survey. This number shows a continuous improvement over recent years. Yet, there is space for further improvement, as the vast majority of younger respondents (18-29 years old) have lower scores compared to seniors.

Of course, it may be possible to live from paycheck to paycheck and make ends meet even with fair or bad credit history. However, this life will definitely be more expensive and difficult.

“If you don’t take good care of your credit, then your credit won’t take good care of you.” Tyler Gregory

We are going to talk about the credit boost and how credit repair works. Obviously, ‘repair’ is certain steps to improve the score. As a result of such repair, consumers may not only get lower interest rates for the majority of loans but also pay little or no deposit to a utility company.

Also, the vast majority of traditional lending institutions and finance-related service providers will most likely check the credit history of the potential borrowers and their score before making the final decision. 

You may not need to obtain an emergency loan at the moment but thinking beforehand can be crucial for your future. 

More than that, having a good or excellent score will allow consumers to pay less for their insurance and open more career opportunities. Yes, you read it right. You may need to learn how to repair your credit yourself if you are willing to get a promotion or start a new successful business.

DIY Credit Repair Guide

How do I repair my credit? Many people ask the question when they suddenly realize the need to improve it. One of the ways to perform this step is to do it yourself. It isn’t extremely hard but usually requires some time and effort.

Glenn J. Downing, MBA, CFP

Glenn J. Downing, MBA, CFP®

The best way to build your score back up is to create good credit history. If you have no credit left, go to your bank and get a secured credit card. Your credit line will be the balance that you keep on deposit. Then, each month, make some charges – for example, all your gasoline – and wait for the bill to come. Then pay it.

If you charge and pay the next day, you haven’t accomplished anything, because you haven’t created any history. Even if this involves only small amounts, it is good credit history being built. If you have some credit accounts still open, then follow the same procedure with each account. Small charge – get billed – pay it off.

Don’t ever be a minute late! This is the quickest way to rebuild credit.”

Experts offer several significant steps to fix the issues. In general, this process includes defining the main problems with your personal finances, finding and eliminating errors, and improving the situation with overspending.

So, here are the basic steps towards having a good credit score again:

  • Get a free copy of your credit report

The very first step is to div out what your current score is so that you know how much you want to boost it. Every consumer has the right to request a free annual report from any of the three major credit reporting agencies. Make sure you request the reports from all three of them (TransUnion, Equifax, and Experian). This way you can see if there are any errors in any of the reports you obtain.

  • Eliminate and dispute any errors you find

All the information and details provided in these reports should be thoroughly reviewed for any mistakes that can later be disputed. Make sure you take your time to look through all sections including your payment history, credit usage, and length, as well as types of credit you’ve taken before. You can dispute any errors online, by phone or mail.

  • Build a positive credit history from scratch

Getting a new secured credit card may be an option when your older accounts have already been closed. Keep in mind that opening a new secured card will require a deposit that is mainly the credit limit. Make certain you opt for a card issuer that will report your payments to the reporting agencies, as this information will help to boost your score much faster.

  • Use credit wisely

Be more mindful of your spending and always pay down the balance on each credit card you take.

If you are feeling overwhelmed and aren’t sure where to start, there is no need to panic. Professional credit repair companies can do this work for you and save you precious time.

Credit Repair Loans

People with poor credit history who are willing to boost their score may obtain a special credit repair loan. This option is meant to help improve the score in a short period of time provided that the borrower repays the loan in full and in time. Such loans don’t demand an excellent FICO score to get approved. Yet, they require having a steady source of income so that the consumer is able to pay the debt off.

The main benefit of this loan is that it will be reported to the three reporting bureaus, so this information will help to improve your score faster. Such loans may be obtained at a local bank, credit union, lending circles, or various online lenders.

Best Credit Repair Companies

Another way to improve credit score is to turn to legitimate credit repair companies. 

If you start searching for the “top credit repair companies online” you may see numerous results. 

Which is better and how can you avoid scams? The very first tip here is to look for feedback on such agencies. Stay away from websites offering free credit repair services with no feedback at all.

Moreover, reading the information in the bold print about the main features of the credit repair service isn’t enough. You need to look through the fine print thoroughly as well and check the reviews. 

Do these companies really work? Or are they a waste of cash? Honest reviews and feedback from real consumers will tell you the truth. While every person wants to find the best credit repair company for less money, opting for a cheap service isn’t the best option.

credit repair services impact

You can spend some time and do your own research about the best services in your country, or rely on expert companies reviews. People are looking for reliability and quality among the most important features of such credit repair programs.

Here are the top three fast services that proved to be trustworthy and able to boost the client’s credit in a short time.

This online agency has been working since 1997 and gained its reputation due to quick expert help and reliability. Its services are the most expensive and cost $99 per month. This is probably the only drawback of this company. 

Many potential consumers ask “Is credit repair legit?” Yes, credit repair reviews will help you understand why so many people choose this company.

They offer free online tools for their customers to track the results and provide an experienced three-step plan on how to change and improve the credit report. During the first four months, the majority of consumers have a 40-point boost in their TransUnion credit score. 

There are plenty of reviews and the customer service works 24/7 to make each client satisfied. Call 1-855-200-2393 to get a free consultation.

Lexington Law credit repair reviews have proven that this service is one of the top-rated ones available these days. The company has been working since 2004 and already helped over 500,000 satisfied clients. The monthly cost is $89.95, and the clients have the right to cancel these services anytime they wish.

Maybe you will write the next positive LexingtonLaw review?

The phone number is 1-855-200-2394 where you can ask any further questions for free.

This is probably the oldest company from our credit repair services reviews. It has been around since 1989 and it still working 24/7 to provide the best results for their clients.

Its services are the cheapest and cost just $79 per month and every consumer receives a 90-day 100% money-back guarantee.

SkyBlueCredit repair reviews mention that the membership may be paused or canceled anytime upon request. However, almost all of the previous clients were satisfied and left positive feedback.

How Long Does It Take to Repair Credit

“If repairing one’s credit is as easy as sending some dispute letters to the credit bureaus then why doesn’t everyone have good credit?” ― Tyler Gregory 

Nobody can say for sure how much time it will take to improve credit for a certain person. While some agencies claim to provide fast repair, this process is generally not that fast. It can take a minimum of one month but most likely up to 6 months or sometimes a year until a person gets a good credit score back. 

While it can take longer to do-it-yourself credit repair, various top-rated online companies may do the same work much faster and provide results within a few months.

How Much Does Credit Repair Cost

Depending on the strategy you select, this process may be completely free of charge or come with a little fee. Those consumers who prefer a “DIY method” of repairing their score can simply request a free annual report copy from all three agencies to review for any errors. However, the clients who trust credit repair companies and want to make sure everything is done perfectly and secure will need to pay a monthly fee of $79-$100 depending on the company. So, make sure you understand your current financial situation and act wisely. 

How to Rebuild Credit

There are two main strategies to rebuild your score. Some people try to do it themselves, while others prefer to turn to a reputable credit repair agencies. There is no single best answer to all your financial problems. Each strategy has its benefits and drawbacks, so everyone decides what works best in his/her particular situation.

Thomas I. Rindahl, MBA, ChFC®, CFP®, LUTCF, BFA™

Thomas Rindahl, MBA, ChFC®, CFP®, LUTCF, BFA™

A good option for building, or rebuilding, credit is to use a secured credit card. It functions in the same manner as any other credit card, but uses cash as collateral against the credit line.

On one hand, taking a few of the above-mentioned steps to improve credit yourself doesn’t cost anything but will certainly take longer. Although, some people fail to conduct all the important steps or can’t div out what exactly they are required to do. 

On the other hand, turning to an expert credit repair service will save you time but cost a little money. However, the whole process will be in the hands of professionals who know how to achieve results.

To sum up, it’s really essential to start improving your credit score as soon as possible. The main reason is that you never know when it may affect your life. People need good credit to apply for various lending solutions or mortgage, paying no or high deposit for rentals or utility services. It may even affect your career and potential promotions. Make sure you do your best to improve your financial habits and boost the credit score to become more financially fit.

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