In this article we presented the 10 best credit repair companies. You can skip our detailed discussion on the finance industry and go directly to the 5 Best Credit Repair Companies.
If your credit report is marred by irregularities such as late payments, debt collections, and bankruptcies, it may become impossible for you to buy a car, home, or lend any type of loan. Major lenders in the US, including Bank of America Corporation (NYSE: BAC), Ally Financial Inc. (NYSE: ALLY), JPMorgan Chase & Co. (NYSE: JPM), or loanDepot, Inc. (NYSE: LDI) will not lend you if your credit score is below 600, thanks to the increasing financial regulation and tight checks after the 2008 financial crisis.
In case you hire a mortgage broker to secure a loan, you will have to pay extra money in the form of higher interest rates. According to the loan savings calculator of myFICO, the consumer division of data analytics company Fair Isaac Corporation (NYSE: FICO), your mortgage interest rate may vary by 1.5% depending on your credit score.
A credit repair company can prove handy to relieve you of this predicament by disputing the negative items and improving your credit score.
According to the consumer complaints database of the Consumer Financial Protection Bureau (CFPB), 282,069 complaints were filed by Americans in the category of ‘credit reporting, credit repair services or other personal consumer reports’ in 2020.
Such a huge number of complaints tell us that credit reports are often replete with mistakes. This makes it imperative for individuals and businesses to consider using services of reliable credit repair companies that might plead their case effectively against inaccurate items on their credit report.
When it comes to choosing a reliable credit repair company, there are hundreds of options and it becomes difficult to differentiate between genuine companies and scammers.
According to the data from the complaints database of CFPB, out of the 486 complaints registered in the category of ‘credit repair services’ 179 were about fraud and scams. Therefore, knowing about the best companies and their unique credit repair strategies not only helps you choose the best service provider in the market but also saves you from falling into the trap of scammers.
According to IBISWorld, the California-based industry and market research firm, the market size of credit repair services in the US in 2021 is worth $3.4 billion. Similarly, MarketWatch, a subsidiary of Dow Jones & Company, reported that worldwide Credit Repair Services market revenue was $13.925 billion in 2019, and with a CAGR of 2.21% during 2020-2025, it is expected to grow to $15.877 billion in 2025.
Data from the 2020 annual survey of the National Foundation for Credit Counseling (NFCC) shows that 62% of adult Americans had credit card debt in 2020 and about 46% of them attempted to find a lower interest rate. According to the survey 7 out of 10 Americans who bore debt find it difficult to minimize it due to financial emergencies.
Moreover, financial stress induced by the COVID-19 pandemic is also increasing the demand for credit repair services. Therefore, the market size of credit repair services is likely to see growth in the next couple of years.
We have reviewed dozens of companies to make this list of top 10 credit repair companies for you.
Let’s start our list of the 10 best credit repair companies.
Best Credit Repair Companies
CreditFirm.net lies at the bottom of our list of best credit repair companies. It is a credit repair law firm based in Deerfield, Illinois. The organization has been in business since 1997. Being a law firm, they are better placed to deal with the legalities of the credit repair process.
They claim to have helped improve the credit scores of over 60000 consumers in all 50 states of the United States. Moreover, according to their website, they have a high level of customer satisfaction as 9 out of 10 customers, who avail of their services, recommend them to friends and family.
They do not charge any upfront fee and their monthly fee is only $49. Moreover, as they do not offer different packages, and charge a flat $49 fee for all the services they provide.
They help their clients remove Bankruptcy, Judgments, Tax Liens, Collections, Charge-off, Late Payments, Repossessions, and Foreclosures from their credit reports. Furthermore, they offer free consultation and you can cancel their services at any time.
The downside of their business is that they are not accredited by Better Business Bureau (BBB), a non-profit business rating organization, and their BBB rating is C+ (on a scale of A+ to F).
9. Pyramid Credit Repair
Pyramid Credit Repair is based in Wilmington, Delaware. The company entered into business as a self-help software-based credit repair company in 2011. Later on, as their membership grew, they started providing complete credit repair solutions.
They offer a free assessment of your credit situation, assign a dedicated credit expert, and provide a personal online dashboard where you can see results and all the steps being taken to improve your credit score.
Pyramid credit offers separate credit repair plans for singles and couples. They are considered best for couples as they have a dedicated plan for them which includes some specialized financial tools.
In addition to these plans, they also offer a 24/7 identity protection plan. The identity theft plan monitors your scores from the three major credit bureaus and reports unusual changes. It includes $25,000 identity theft insurance and has a monthly fee of $29.99.
Pyramid Credit provides the option to postpone, pause or cancel the service anytime. Additionally, they provide special discounts to veterans, active duty servicemen, and teachers. They also offer a 100% money-back guarantee, if they fail to deliver results within 90 days.
8. Credit Repair.com
CreditRepair.com is based in Salt Lake City, Utah. The company is offering credit repair services since 2012. They offer a broad range of services ideal for all types of credit repair needs.
CreditRepair.com offers a free online credit evaluation which includes your credit score, a summary of the negative items on your report, and suggestions for how to address them. CreditRepair.com provides an excellent mobile app where clients can track their progress and get alerts.
They offer three different plans, including Direct, Standard, and Advanced plan. Each plan provides a different level of services. Direct plan provides basic services and is best suited to clients who have a handful of negative items on their report. This plan includes 15 negative item challenges and three creditor disputes to all three credit bureaus each month along with credit monitoring.
Advanced Plan, being the most comprehensive plan of CredirRepair.com, provides identity theft protection and insurance, a host of financial tools, monthly FICO credit scores along with eight creditor interventions to all three credit bureaus.
What damages their reputation to fall at 8th spot in our list is a D rating from Better Business Bureau, and 15 complaints filed against them to Consumer Financial Financial Protection Bureau during the last four years.
7. AMB Credit Consultants
AMB Credit Consultants is a Dallas, Texas-based credit repair firm. The organization was founded in 2007. AMB Credit is relatively new in the credit repair business, but it has earned a good reputation by delivering favorable results to its clients.
They have a good level of customer satisfaction as there are no complaints filed against AMB to the Consumer Financial Protection Bureau (CFPB). AMB consultants are not Better Business Bureau accredited and has a BBB rating of C.
They are considered a relatively expensive company as they charge $149 as enrollment fee along with a monthly fee of $99. But, they offer an unlimited number of disputes in a single billing period. They also offer an online portal, where customers can track the status of their credit repair case.
They offer discounts to couples on enrollment fee if they sign up together. Unlike many credit repair companies, they do not offer free consultation and also charge an additional $24.99 per month for credit monitoring.
6. Lexington Law
Founded in 1991, Lexington law is one of the most experienced credit repair companies in the USA. Currently, Lexington Law is the biggest credit repair company in the United States in terms of number of clients.
They offer a free online consultation to their new clients. Unlike many of its competitors, Lexington Law does not charge an upfront fee. They offer three different packages to clients.
Their entry-level package is Concord Standard. It covers all the essentials of credit repair with a monthly fee of $89.95. In fact, this package includes all the services offered by many small companies.
The most expensive and thorough package provided by Lexington law is Premium Plus with a per month fee of $129.95. The most important features in this package are the Fair Isaac Corporation (NYSE: FICO) score tracker, identity theft protection, and a bundle of personal finance tools.
However, there have been several complaints filed against the company with CFPB over the past decade. Moreover, their Better Business Bureau (BBB) ranking is C and the company is not accredited by BBB.
When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.
However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.
What is Sallie Mae?
Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.
In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.
However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.
In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).
At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.
What is the difference between private and federal student loans?
With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.
On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.
Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.
As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.
Are Sallie Mae loans better than federal student loans?
In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.
However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.
If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.
With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.
The bottom line
Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.
Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.
PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have.
1. Analyze Your Finances Quarterly or Biannually
You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.
With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.
The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.
4. Savings and Retirement Accounts
The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.
A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies.
Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan.
Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito.