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11 Ways to Improve Your Credit Score

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If you aren’t getting approved for credit cards or loans and aren’t getting favorable rates for financing, you might need to  improve your credit score. Building credit isn’t a particularly quick or simple process, but we have some tips that can help you start and keep improving it along the way.

How Can I Improve My Credit Score?

  1. Make Sure Your Credit Reports Are Accurate
  2. Pinpoint What You Need to Improve
  3. Create a Plan to Improve Your Credit Score
  4. Fix Your Late Payments
  5. Build a Strong Credit Age
  6. Clear Up Any Collection Accounts
  7. Don’t Let Old Mistakes Unfairly Haunt You
  8. Get a Credit Card
  9. Open a Secured Credit Card
  10. Limit Credit Applications
  11. Fix Your Credit Utilization Ratio

As you begin the process of improving your credit score, keep in mind that it’s a marathon and not a sprint, but improving your score is worth the effort. A poor credit score can potentially cost you tens of thousands of dollars over the course of a lifetime. It can also become a source of serious stress, making you feel like you just can’t leave the mistakes of the past behind and move on.

Luckily, you’re not alone. Plenty of people struggle to improve their credit scores, and there are numerous ways to build good credit — and reap the rewards that come with having a good credit score.

Improving FICO Scores

When looking to improve your FICO score, you should regularly check your credit report, set up payment reminders, and work to reduce the total amount of debt you owe. Your payment history contributes a staggering 35% to a FICO Score calculation and this category can and will have one of the most significant impacts on how you can improve your FICO score as you will see in the information outlined below.

Rapid rescoring is a practice commonly used by mortgage originators to help improve credit scores. Rapid rescoring is a two-step process that first involves correcting and updating information, and that information is then sent to the credit bureaus. When the rapid rescore is done, this information is added to the consumer’s credit file within days to update and improve their credit scores quickly.

However, the rapid rescore is not a service a consumer can get done on their own. They will need the assistance of the mortgage lender or other lender because rapid rescore is a service the three credit bureaus provide to these lenders.

1. Make Sure Your Credit Reports Are Accurate

The first step to improving your credit score is checking your credit reports. Everyone has three credit reports — one from each of the 3 major credit bureaus: Experian, Equifax and TransUnion. Credit reports can, and often do, have mistakes on them.

A 2012 study from the Federal Trade Commission found that 1 in 5 consumers had an error on at least one of their credit reports, and a follow-up study in 2015 found that those who reported an unresolved error on one of their reports believe that at least one piece of disputed information is still inaccurate.

Since your credit scores are based on the data in your credit reports, it’s incredibly important to make sure that all of that information is accurate. If you have a mistake or discrepancy on your credit report, your credit score will reflect that mistake.

It’s easy to check your credit reports from each of the three major credit reporting agencies. You’re entitled to a free copy, once a year, of all three of your credit reports under the Fair Credit Reporting Act. These free credit reports can be accessed via AnnualCreditReport.com, the government-mandated site run by the major bureaus. (You can also view a free credit report snapshot on Credit.com.)

Most credit scores – including the FICO score – operate within the range of 300 to 850. The credit tiers generally look like this:

  • Excellent Credit: 750+
  • Good Credit: 700-749
  • Fair Credit: 650-699
  • Poor Credit: 600-649
  • Bad Credit: below 600

Once you have your three credit reports in hand, here’s a quick checklist of questions to ask yourself to help you spot potential errors:

  • Is all of your personal information accurate? (That can include your Social Security number, birth date, full name and address.)
  • Are all of your credit accounts being reported?
  • Are there any late or missed payments listed that you remember making on time?
  • Are there any accounts or applications for credit you don’t recognize?
  • Are there any items from decades ago still appearing on your report?

It helps to go through your credit reports with a highlighter and pick out any and all inconsistencies. Keep in mind that a credit report from one credit bureau may have an error, while another may not. That’s why it’s so important to check all three of your credit reports from all three credit reporting agencies for inaccuracies on each. You may find none, a few, or perhaps many errors on your reports. That’s where the next step to improving your credit comes in.

If you find an error on all three credit reports, you’ll have to dispute it separately with each credit bureau, as they’re run separately from one another. You’ll also have to file a separate dispute for each error you find. (Here’s more on dealing with multiple errors on credit reports.) You can dispute these errors on your own for free, or you could consider hiring a reputable credit repair company or credit counselor to help.

2. Pinpoint What You Need to Improve

Simply having an error on your credit report doesn’t necessarily mean it’s causing you to have bad credit. For example, if a misspelled version of your name appears in the personal information section of your credit report, that error probably isn’t causing your credit score to dip.

Other errors, like those listed in the previous section, could be to blame — and there are a number of possible reasons why those errors are there.

Here are a few examples:

  • Your identity has been stolen, and a thief is abusing your credit.
  • A collection account from years ago is still being reported, even though it’s past the statute of limitations in your state.
  • A bill your ex was supposed to pay (per your divorce) has gone unpaid for a while, and now you’re suffering the consequences.
  • You defaulted on one loan, and now it’s showing up as multiple defaults on your credit report because it’s been sold to debt collectors.
  • Your credit information has been mixed with that of someone else who has a similar name.

If your credit report is accurate, but you still have a bad credit score, it’s important to understand why. Here are the major credit scoring factors and how each one can impact your credit score:

  • Payment History: If you have a history of making late payments, creditors see you as a bigger risk, and this factor has the greatest effect on your bad credit score.
  • Amount of Debt: Debt contributes 30% to a FICO Score’s calculation and can be easier to clean up than payment history, according to FICO’s website. (It weighs heavily on other credit scoring models, too.) That’s because if you currently have five maxed out credit cards, creditors worry whether you’ll be able to take on more credit and whether they’ll get paid back first or if your other creditors will.
  • Age of Accounts: If you’re newer to credit and borrowing, there isn’t a whole lot of data to go on. You may need time to see your credit score improve.
  • Account Mix: Lenders want to make sure you can handle different types of credit like credit cards and auto loans, for example. If the only credit you have is in the form of credit cards, you may be keeping your score from rising.
  • History of Credit Applications: If you applied for a dozen new credit cards this month, creditors wonder why. They may be worried you’re overextended financially.

3. Create a Plan to Improve Your Credit Score

If your credit report information is accurate, but you know what you did wrong and want to work to improve it, you can make an action plan using your free Credit.com account, and see how that plan impacts your credit scores over time. You can even get tips on what your problem areas might be.

To begin improving your credit score, you should aim to keep your credit card balances on the lower end along with any other type of revolving credit you may have. You should also begin the task of paying down your debt rather than moving it around, and you shouldn’t close any unused credit cards because you are looking for a “quick fix” strategy to improve your credit scores.

Finally, do not attempt to open any new credit accounts such as obtain a new loan or apply for a new credit card that you don’t need because you are just looking for a way to increase the available credit you already have.

4. Fix Your Late Payments

Even closing an account won’t make your late payments disappear. Your best bet here is to get yourself back on the right track — set up payment due date alerts with all your credit cards and loans and get organized. You can move credit card payment due dates around pretty easily on your bank or lender’s website. Be sure to check your payment due dates in relation to your paycheck schedule.

Ask your credit card issuer or lender if they can forgive that late payment. Maybe you were out of the country on vacation, or the check got lost in the mail, and you had no idea the bill existed. Credit card companies, in particular, are pretty forgiving if you have a long track record of making on-time payments.

Delinquent payments can remain on a credit report for up to seven years from the date of the missed or late payment that the credit bureau reported. This original date is also referred to as the original delinquency date.

The credit bureau, however, will not consider the payment late unless it is at least thirty days past the intended due date. But this does not mean that the credit issuer will refrain from charging you with a late fee or penalty when you are only days late.

5. Build a Strong Credit Age

If you have a short credit history, there’s not much you can do quickly here to improve your credit. You could try to piggyback on a friend or family member’s credit card if they have a long history of on-time payments.

Have them add you as an authorized user. However, you may struggle to find someone willing to do so since they would be responsible for any charges you make. Your other option: Wait it out and don’t close any accounts.

A good average age of credit history would be five years and up. The longer your positive credit history is, the better the credit scores may be. For example, a consumer with an average credit history of only one year may only have a reflective credit score in the lower 600’s while someone with over five years of good history will be much higher.

Keep in mind that if you have no history at all, it will take an estimated three to six months from the beginning date to see any kind of activity being reported on your credit reports. If you have recently acquired a credit card, you should make small purchases you will be able to pay off by the due date to begin to establish credit and show that you can manage a monthly payment.

6. Clear Up Any Collection Accounts

Pay off your debt instead of repeatedly transferring it to new accounts. Contact the debt collector listed on your credit report to see if they’d be willing to stop reporting the debt to each major credit bureau (Equifax, Experian, and TransUnion) in exchange for full payment. This technically violates some of the collectors’ agreements with the credit bureaus, so it may be a non-starter, but it never hurts to try.

Just be sure to get that promise in writing before you make a payment. Also, if it’s a debt that you don’t recognize or seems inaccurate, dispute it with all three credit bureaus. You may get it removed and see your credit score improve quickly.

7. Don’t Let Old Mistakes Unfairly Haunt You

If you’ve filed for bankruptcy, gone into foreclosure or suffered through a short sale, you may be wondering when the credit score misery ends. How long will it really take to get out of the credit score hole you’re in? For all of these mistakes, your credit score takes the biggest hit when it first hits your credit report, but its impact will lessen over time and eventually that account will disappear from your credit report due to federal laws that limit the amount of time it can impact you.

(For more on time limits those federal laws impose, check this out.) If you see an item that shouldn’t be on your report anymore, dispute it with all three credit bureaus, and you’ll likely see your credit score move up when the item is removed.

8. Get a Credit Card

If you’ve never had a credit card before, your scores may be suffering because of that account mix factor we talked about earlier. Just make sure you make on-time payments — a new credit card account with a bad payment history will hurt you, not help you improve your credit scores. If you have a fair, good or excellent credit score, there are many credit card options out there for you. If you have a poor or bad credit score, read the next tip.

  • No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee
  • Up to 1.5% cash back after making 12 on-time monthly payments
  • Variable APRs 14.49% – 25.49%
  • 1% cash back on eligible purchases right away
  • Up to 10% cash back from select merchants
  • Build credit alongside tens of thousands of Petal Card members
  • Cash flow technology can help applicants without credit history get approved
  • $500 – $10,000 credit limits
  • Petal’s mobile app makes it easy to manage your money, track your spending, and automate payments
  • No deposits required. Card issued by WebBank, Member FDIC

9. Open a Secured Credit Card

A secured credit card is a type of credit card where you make a deposit into a checking account that “secures” the line of credit the bank or lender is extending you. For example, you can open a checking account and put $200 in it and get a line of credit for $200 (though some secured options will give you a higher credit limit than your deposit).

You can get a secured card with bad credit and adding a new account with a positive payment history will go a long way in showing creditors you’re back on solid ground.

If you default on the payments on a secured credit card, then the deposit you made initially will be used to cover the balance on the card.

10. Limit Credit Applications

The 10% discount for signing up for a store credit card may seem worth it at the moment, but your credit score will take a hit for applying, whether you get approved or not. A hard inquiry will impact your credit score for a full year, though your score will start improving almost immediately after you apply.

The hit is small (normally around 3 to 5 points) but if you’re on the edge of two credit score tiers or applying for lots of credit offers in a short time span, you can do a lot of damage.

If you find that a hard inquiry was placed on your credit file and you have no knowledge of it, make sure to contact the lender that performed the inquiry to see what it was pertaining to. If it is not accurate or you still have no knowledge of the inquiry, you should expect fraud or identity theft and should promptly alert the credit bureaus of the alleged fraud so that it can be investigated. Doing so may also remove the hard inquiry from your credit report, although it may take some time.

Soft inquiries, on the other hand, do not affect your credit score at all and is typically done when a lender is looking to issue you a higher line of credit or someone checks your credit report as part of a background check. A soft inquiry can happen even without your permission, but they will not affect your credit standing in any way.

11. Fix Your Credit Utilization Ratio

If your credit card balances every month are more than 30% of your credit limits, your score is suffering, even if you’re paying off your balances in full every month by the payment due date. That’s because your statement balance is most likely what’s being reported to the credit bureaus. So, keep an eye on those balances, and consider pre-paying some of the balance if you know you’ll be above that 30% mark this month.

The debt-to-credit ratio is definitely considered one of the more important factors that help determine consumer credit. This is also why it is not recommended that you close any unused credit card accounts you have as a way to try and raise your credit scores. Doing so will affect your utilization ratio percentage and can actually do more harm than good.

If you do decide to close any consumer credit account, then make sure you are able to maintain a 15% utilization percentage without having that credit card. If not, you should consider other options regarding that credit card such as replacing that account with a new credit card account just to keep up with your good credit utilization ratio.

Your debt-to-income ratio also plays a big role regarding your credit and is basically all of the monthly debt you have divided by your gross monthly income. Lenders often use the debt-to-income ratio to determine if you will be able to make your payments each month.

The difference between the credit utilization ratio and the debt-to-income ratio is that the credit utilization ratio is the only one that will impact your credit score. The debt-to-income ratio is used by lenders and can be very influential when it comes to extending credit which is why it also plays a significant role and should also be monitored as you would your credit utilization.

Like we said earlier, improving a poor credit score takes time, but it’ll be completely worth it. Constantly worrying about being approved for loans, mortgages and new credit cards is not something you want to be doing for the rest of your life.

Following these tips will not only save you money but also teach you the valuable skills necessary to maintain a good credit score in your future. If you have bad credit, don’t give up on credit entirely. Instead, be responsible and stay educated about your accounts and scores so you can successfully handle your own finances and find a credit repair plan that works well for your situation.

UNITY® Visa Secured Credit Card – The Comeback Card™—Good for Balance Transfer or Consolidation

UNITY® Visa Secured Credit Card – The Comeback Card™

  • Unlike your Prepaid Card, UNITY Visa secured card can help you build your credit. Apply online in less than 5 minutes, and you could be approved today!
  • No Minimum Credit Score required; low fixed interest rate of 17.99%; Fully refundable FDIC security deposit* required at time of application; if you have a min of $250 to deposit immediately, you can start now!
  • No application fee or penalty rate
  • Monthly reporting to all 3 major credit bureaus
  • 24/7 online access to your account
  • *See the Cardholder Agreement for more details.

If you’re consistently going over that 30% mark, ask your credit card issuer for a credit limit increase. If you’ve done some work on your credit score since you first applied and have a good payment history, they may consider upping your limit and giving you more wiggle room.

You can also open a totally new credit card to divert some spending as well. Again, remember the credit inquiry — and be sure your card can handle it. In most cases, the small hit should be more than mitigated by the newly available credit, but if you’ve been applying for a lot of credit lately or you risk being rejected for the new credit line, you’ll want to tread carefully.

Hannah Maluth contributed to this article. This article has been updated. It was originally published March 13, 2017.

One in Five Americans Are Shocked to Find Errors on Their Credit Report

Credit report mistakes can lead to disqualification for mortgages and car loans, as well as increased insurance premiums and interest rates. In some cases, those mistakes can even prevent you from getting a job.

Consumers have started enlisting a law firm to dispute negative items on their credit reports…and they’ve been wildly successful! Click here to learn about the strategies they use to fix their credit.

79% of consumers who disputed credit report errors were successful in removing them

Lexington Law offers services to dispute unfair negative items. Call for a FREE consultation:

Call 1.844.346.3403

[DISCLOSURE: Cards from our partners are mentioned here.]

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Credit Repair Companies

USA Credit Repair Review

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Consumers looking into credit repair companies are faced with many different options, some better than others. USA Credit Repair falls short of meeting our standards in several areas, including quality of services, pricing structure, and sales practices. Our review breaks down these red flags and more to help you make the most informed decision when approaching credit repair.


Pros Explained

  • Free consultation: Get a credit repair consultation before deciding if you want to commit to services.
  • Offers an accelerated service: If you’re in a rush, you can pay for faster results.
  • Cancel anytime: USA Credit Repair doesn’t lock customers in with long-term contracts.
  • Online portal: Track your progress via a convenient account management portal.

Cons Explained

  • Misleading claims: USA Credit Repair makes several claims regarding fees and guaranteed results that could easily mislead customers.
  • Lack of pricing transparency: The company fails to disclose pricing online, forcing you to talk to a sales agent to get a quote.
  • Website difficult to navigate: It’s hard to find the information you need on USA Credit Repair’s website.
  • No educational resources: We typically like to see credit repair companies provide value with free educational materials, but USA Credit Repair doesn’t make these available.
  • Doesn’t offer a money-back guarantee: USA Credit Repair promises results within the first 30 days but doesn’t back this claim up with any type of financial guarantee.

Types of Services

USA Credit Repair’s services are limited to the bare minimum typically required of a credit repair company. There are no clearly defined service packages, just a single membership option with few opportunities for customization.

Credit report analysis

The first step in USA Credit Repair’s process is a credit report analysis. A credit expert reviews your credit reports in depth, looking for negative items bringing down your score. Each item is carefully examined to determine whether you might have grounds to dispute it with the credit bureau.

Credit disputes

If USA Credit Repair identifies items in your credit reports that are inaccurate, they’ll contact the credit bureaus on your behalf to initiate the dispute process. This includes filing appeals if a dispute is initially denied.

If you believe a credit reporting error comes from the lender’s side, you can also have USA Credit Repair send a validation request to ask for proof that the debt is legitimate. Finally, the company handles goodwill interventions, which can be an option for a small number of people with a single negative mark but overall good credit. If the item is accurate but an anomaly on your report, you may be able to have it removed just by showing an otherwise positive payment history.


Optional Add-ons

Credit repair companies sometimes sell add-ons to their core packages for an extra fee. For example, they may offer credit monitoring or identity theft protection to be used in tandem with their credit repair services. USA Credit Repair doesn’t make any of these available, although it does provide one optional service to speed up the credit repair process.

Accelerated program

Unexpected credit reporting errors can hold up time-sensitive processes such as applying for a mortgage. If you’re on a tight schedule, USA Credit Repair’s accelerated program provides faster results for an additional upfront fee. However, the company doesn’t say exactly how much more efficient its accelerated program is compared to standard service. Without any guarantees, it’s hard to say whether this add-on is even worth it.


Customer Service

Like most credit repair companies, USA Credit Repair stays in touch with customers via phone and email. Operating hours are somewhat limited, from 9 a.m. until 6 p.m. EST. The company also hosts an online portal where customers can log in and check the status of their credit repair case 24/7.

Each customer is assigned a dedicated case representative who oversees their entire credit repair process from start to finish. While this is fairly common, not every company does it and it makes a big difference in the overall customer experience. With a designated case manager, you’ll always have someone to talk to who is familiar with your specific situation.


Company Reputation

USA Credit Repair’s reputation among customers is mixed. To the company’s credit, it has no complaints registered with the Consumer Financial Protection Bureau, which keeps a record of customer-reported issues related to poor business practices and potential legal violations. It also has an average 4-star rating on Google with mixed positive and negative reviews.

However, USA Credit Repair has an F rating with the Better Business Bureau and a pile of concerning complaints. Many former customers claim that they were charged hundreds of dollars in advance for services that failed to produce results. There are also reports of harassing phone calls after discontinuing services with the company.

Just because a company doesn’t have any complaints with the Consumer Financial Protection Bureau doesn’t make it automatically trustworthy. Most consumers don’t know about the CFPB complaint database, and it’s not uncommon for smaller companies like USA Credit Repair to have no complaints. In addition to vetting companies through the CFPB database, you should also look at other resources like the Federal Trade Commission, the Better Business Bureau, and Google Reviews.

If you have a complaint about the services of a credit repair company, you can file a complaint with the FTC or call 877-FTC-HELP.


Contract Duration

On its website, USA Credit Repair advertises that it has no contracts and offers a “month to month” service that customers can cancel anytime. But according to testimonials from former clients, this isn’t exactly the whole truth. Many customer complaints allege that company representatives convinced them to pay for multiple months ahead of time in one lump sum, typically in three-month quantities. Although this may not technically be considered a long-term contract, it’s a problematic practice, to say the least.


Cost

Our most pressing concern while reviewing USA Credit Repair was its pricing structure. First and foremost, the company doesn’t disclose its prices online. This is typically a red flag, as it forces customers to talk to a sales representative just to get a quote, which opens up opportunities for pitfalls. Pricing may vary by individual and plan, although according to the information we received and reports from customers, base pricing is around $99 per month.

With that said, an overwhelming number of former customers claim that they were charged upward of $300 in advance for multiple months of service. This typically appears to happen after the customer calls in and is convinced by a company representative that their credit repair case will take a certain number of months to resolve. Those who enroll in the accelerated program can expect to pay an additional $350 fee on top of regular service charges.

USA Credit Repair also publishes some misleading information on its website regarding its fee structure. The company advertises no upfront fees, but this is a moot point since the Credit Repair Organizations Act makes it against the law for credit repair companies to collect payment before services have been rendered. To make things worse, hidden in the website’s fine print is a disclaimer that states “an initial setup work fee will be charged within the first week or once initial work is completed.”

One other item we found missing was a discount for couples. It’s fairly standard for credit repair companies to give couples a break on fees when signing up since their reports share much of the same information. With USA Credit Repair, couples have to pay full price for two individual memberships.

The one silver lining is that USA Credit Repair’s initial consultation is free. Not every credit repair company does this. A free consultation is a good opportunity to ask the company hard questions about whether any items stand out on your report as potential errors. If the representative is unable to point to any legitimate mistakes, credit repair may not be necessary for you.

Remember that credit repair companies can’t work magic. If all the information on your credit report is accurate and there are no errors to dispute, you’ll only be able to improve your credit by keeping debt low and making consistent on-time payments.


The Competition: USA Credit Repair vs. CreditNerds

To see if USA Credit Repair was worth the $99 monthly fee, we compared it to CreditNerds, a competitor that offers free basic credit repair. Instead of collecting fees from its customers, CreditNerds makes money by referring clients to affiliate partners.

We were unable to find anything significant in USA Credit Repair’s service offering that wasn’t available through the free CreditNerds plan. If that wasn’t enough, CreditNerds provides some of the most advanced educational tools in the industry—also without charging a dime. CreditNerds gives USA Credit Repair a run for its money and is absolutely worth considering before you sign up for a paid plan.

  USA Credit Repair CreditNerds
Year Founded 2004 2007
Services Offered Credit repair Credit repair, funding
Customer Service Touchpoints Phone, email, client portal Phone, email, client portal
Upfront Fee $99.00 $0
Monthly Fee $99.00 $0


Verdict

Overall, we aren’t impressed with USA Credit Repair’s limited services, especially given the company’s relatively high fee of $99 per month. Several competitors offer complete service packages at significantly lower prices, many of which take a more effective approach that includes credit education and long-term financial planning. Even if USA Credit Repair did provide better value, the company’s advertising practices and lack of transparency make us concerned that customers could easily be misled and fall into traps.



How We Review Credit Repair Companies

Since the credit repair industry is well-known for leading consumers astray, we take a highly critical approach to reviewing companies. Our scoring system analyzes quality of services and pricing, comparing them to industry standards and best practices. We look at each company’s marketing language and flag any misleading terminology. We also give higher scores to companies that provide educational materials to help customers achieve long-term financial success.

Learn more: Read our full Credit Repair Review Methodology here.



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CreditRepair.com Credit Repair Review

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One of the most well-known credit repair companies, CreditRepair.com has been helping consumers address credit disputes since the late 1990s. But just because a credit repair company has spent decades in business doesn’t mean it offers the best services. While CreditRepair.com has a competitive range of plans, there are also a few red flags you should know about before you decide to enroll in credit repair services.


Pros Explained

  • Offers a free credit evaluation: Get a free online credit snapshot that includes your credit score, a summary of the negative items on your report, and suggestions for how to address them.
  • Choose from three service levels: CreditRepair.com offers options for basic, moderate, or aggressive credit repair based on your needs.
  • Robust educational library: Even non-customers can take advantage of the free credit information, videos, and interactive calculators at CreditRepair.com.
  • Mobile app available: Download the free CreditRepair.com mobile app to track your progress and get alerts.
  • Option for in-house credit monitoring: Two of CreditRepair.com’s three service packages include ongoing credit monitoring and alerts.

Cons Explained

  • Poor customer reviews: CreditRepair.com gets consistently poor feedback across multiple review sources.
  • Lacks full pricing transparency: Pricing isn’t disclosed up front on CreditRepair.com’s website, and you need to watch out for hidden fees.
  • Limited monthly disputes: Depending on the plan you choose, you’ll only get 15 to 19 disputes per month.
  • Not available in all locations: CreditRepair.com may be unable to offer services in your area of residence due to lack of local legal representation. Unfortunately, the company doesn’t disclose its service areas; you’ll have to enter your address to find out.
  • No money-back guarantee: Many competitors offer a refund if they aren’t able to remove any items from your report, but CreditRepair.com doesn’t have a similar policy.

Types of Services

CreditRepair.com offers three service packages with tiered levels of service. These are designed with the idea that not all customers need the same level of support in repairing their credit; some may just have one or two errors to be corrected while others are in need of a complete overhaul. This allows customers to save money by not paying for services they aren’t likely to ever use.

Direct Plan

The entry-level Direct Plan is the one most suited for individuals with an overall decent credit history, but who could benefit from correcting a small number of errors on their report. The plan comes with up to 15 disputes per month (five per credit bureau), a quarterly credit score update, and access to customer service as needed. However, CreditRepair.com will not dispute inaccurate hard inquiries on your report with this plan.

Standard Plan

The next step up is the Standard Plan. This package includes the same number of monthly credit disputes and credit score checks, but adds a few features useful to those with more extensive credit repair needs. In addition to your quarterly credit score, you’ll also get a personalized analysis as to what has changed and what could still be improved. Ongoing credit monitoring is included with alerts sent anytime there is a significant change. CreditRepair.com will also dispute hard inquiries on your behalf.

Advanced Plan

If you have extremely poor credit and need improvements that go beyond disputing inaccurate information, the Advanced Plan may be more suited to your needs. The package includes roughly the same credit repair benefits as the Standard Plan, although you’ll get 19 disputes per month instead of 15. However, the plan also comes with $1 million in identity theft insurance and access to personal finance tracking tools to help you better manage your open credit accounts.

Service Direct Plan Standard Plan Advanced Plan
Monthly items disputed 19 15 15
Credit score checked Monthly Quarterly Quarterly
Credit score analysis Monthly Quarterly  
Customer support
Credit monitoring  
Hard inquiry disputes  
Identity theft insurance    
Credit account management tool    

Optional Add-ons

Between CreditRepair.com’s three tailored plans, there isn’t much need for add-on services. With that said, the company does sell one optional extra that can be tacked onto any package.  

Quickstart Service

If you’ve just discovered errors in your credit report while in the process of a major financial event (such as applying for a mortgage), you’re probably on a tight schedule to correct the issue. CreditRepair.com’s Quickstart service charges a small one-time fee to automatically retrieve your TransUnion credit report from partner site Credit.com and load it into their system. This can save a bit of time as CreditRepair.com won’t have to wait to start looking through your report.

Pay close attention as you’re completing the checkout process on CreditRepair.com. The company automatically checks the box selecting Quickstart, and unless you uncheck it, you’ll be charged an extra $14.99 for a service that you may not want or need.


Customer Service

CreditRepair.com’s main customer service touchpoints are via email and phone, the latter of which is operated Monday through Friday from 6:00 a.m. until 10:00 p.m. MST.

Customers can also download a mobile app for easier access to their account dashboard and credit score tracker. The app is available for both iOS and Android and gets generally positive reviews with at least four-star ratings in both app stores.


Company Reputation

From an objective standpoint, CreditRepair.com’s services appear to offer good value with a broad range of services. Unfortunately, however, many customers seem to disagree. The company has a D rating from the Better Business Bureau, 62 complaints in the past three years, and a three-star average rating.

More worrisome is that CreditRepair.com has been the subject of 16 complaints with the Consumer Financial Protection Bureau in the past three years and was even sued by the agency in 2019. According to the lawsuit, CreditRepair.com and a competitor owned by the same holding company, Lexington Law, both violated telemarketing laws and charged illegal credit repair fees before any service had been rendered. This violates the Credit Repair Organizations Act, which states credit repair companies cannot collect payment before providing their services.

If you have a complaint about the services of a credit repair company, you can file a complaint with the FTC or call 877-FTC-HELP.


Contract Duration

None of CreditRepair.com’s service plans are subject to contracts, meaning you can cancel anytime without penalty. According to the company, most customers need to pay membership fees for an average of six months to see results.


Cost

CreditRepair.com prices its services according to the table below, with fees ranging between $69.95 and $119.95 per month depending on the plan you choose. Those who select the Quickstart service will incur an additional one-time fee of $14.99.

  Direct Plan Standard Plan Advanced Plan
Monthly fee $69.95 $99.95 $119.95

To stay in compliance with the Credit Repair Organizations Act, CreditRepair.com calls its first month of membership fees a “first work fee”. This is because credit repair companies aren’t allowed to start charging monthly fees until they’ve already begun performing work. From a practical standpoint, this doesn’t change anything for the consumer, but it’s something to be aware of as you’re signing up for credit repair.


The Competition: CreditRepair.com vs. The Credit Pros

No two credit repair services are the same. To gauge how CreditRepair.com stacks up against the competition, we pitted it against The Credit Pros. Both companies charge similar monthly fees for their entry-level plans, although The Credit Pros’ most premium plan is pricier than CreditRepair.com’s most expensive option. The Credit Pros also charges a significant upfront fee whereas CreditRepair.com has none.

While The Credit Pros is higher in price, we find the difference justified. All packages include credit monitoring and identity theft protection, items CreditRepair.com only offers with higher-tier plans. The Credit Pros will also submit unlimited disputes on your behalf, while CreditRepair.com places a cap on the number of disputes per month at each of its service levels. Finally, The Credit Pros offers financial management tools to all of its credit repair customers that CreditRepair.com doesn’t match. These include bill payment reminders, a budgeting system, and automatic syncing with your open accounts.

  CreditRepair.com The Credit Pros
Year Founded 1997 2009
Services Offered Credit repair, monitoring, identity theft protection Credit repair, monitoring, identity theft protection, financial planning
Customer Service Touchpoints Phone, email, mobile app Phone, email, client portal
Upfront Fee $0 $119.00 to $149.00
Monthly Fee $69.95 to $119.95 $69.00 to $149.00


Verdict

Looking at CreditRepair.com’s plans and services, they seem to provide much better value than competitors, especially considering the inclusion of credit monitoring and identity theft protection with premium packages. However, we’re highly concerned with the volume of customer complaints and CreditRepair.com’s history of facing legislation from the Consumer Financial Protection Bureau. It’s best to proceed with caution with this company.



How We Review Credit Repair Companies

We assess a variety of factors to review credit repair companies, using a quantitative scoring system to assign each a total score out of five possible points. Our method looks at the services offered by each company, including the number and variety of plans available and their value in terms of pricing. We also look at each company’s reputation among customers and with third-party agencies such as the Consumer Financial Protection Bureau. Finally, we walk through the customer purchasing experience to see what you can expect if you decide to enroll in credit monitoring services.

Learn more: Read our full Credit Repair Review Methodology here.




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Credit Repair Companies

ADR Financial Group makes its name as one of The Best Credit Repair Companies in the USA

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Your credit score plays a vital role when it comes to buying a car, purchasing a home or obtaining a loan for any other purpose like starting a business. In cases where you have a lower credit score, these purchases may become unrealistic and impossible to achieve. It may result in having to pay higher interest rates or putting down a large down payment. Having negative marks on your credit report will hamper your creditworthiness which is why it is important to stay on top of your finances. 

Within a short period of time, ADR Financial Group quickly raised to the top as one of the best credit repair companies in the United States. Founded by Alexis (“Lex”) DeWitt and Ratiq (“Rocky”) DeWitt, ADR Financial Group is based in Charlotte, North Carolina. ADR Financial  Group is dedicatedly assisting their  its clients with the removal of inaccurate, erroneous, and unverifiable accounts on their credit report. With a mission to deliver a clean credit profile to its their clients, ADR Financial Group also educates their clients on how to achieve the highest credit scores during restoration. 

ADR Financial  Group is not your typically credit repair company.  What separates ADR apart from all, is the fact that their program is personalized to fit their client needs,  rather than providing a generic procedure for all. Although credit is an important aspect of life it is not taught in schools or institutions. This is the sole reason behind the establishment of ADR Financial Group. Over the years, ADR helped many of their clients reach their financial goals . Till date, ADR has helped more than 700 families purchase their dream home, removed more than $17 million of debt from credit reports and deleted over 72,000 negative accounts.

Some of the services offered by the company are Full-Service Credit repair, DIY Credit Repair, Tradelines, Credit Education, Business Credit and Credit Monitoring. Moreover, ADR also teaches other entrepreneurs how to start their own credit repair company to help change lives. Check out their website www.badcreditcostmore.com if you’re interested in their services. 

In the next 5 years, the company plans to be a pioneer for all those who find difficulty in purchasing their homes. ADRs target is to help 5000 families in building a home of their dreams. Besides this, ADR plans to make financial literacy a topic of discussion in many schools and households. ADR is making a significant impact in urban 

(Syndicated press content)

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