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By the middle of 2019, there were 38.4 million personal loans in the United States. In the past, personal loans were primarily a last resort for borrowers. In the last few years, they have become one of the most popular forms of consumer debt in the country. 

With a personal loan, you borrow money for a short amount of time. In most cases, the loan term is between two and five years in length.

Depending on the amount you need and your credit score, you can generally borrow between $1,000 and $100,000. Different banks have specific requirements for loan terms and borrowing limits. 

Because this type of loan is unsecured, banks generally charge higher interest rates than they do for secured loans. When a loan is unsecured, it means that you do not have to use collateral like your house to back up the loan. If you default on the loan, the bank cannot access your collateral to recuperate their losses. 

The average borrower has $8,402 in outstanding debt on their personal loan. Depending on the lending institution, loan term and credit history involved, the monthly cost of personal loans can vary significantly.

Personal loans are typically available for amounts between 10% and 28%. Someone with a high credit score may be able to get an interest rate of just 7.25%. 

Top Low Interest Personal Loans


The following lenders are the best you can find for a low interest personal loan:

1. LightStream
Best Overall
2. Upgrade
Easiest Application Process
3. SoFi
Best for Borrowers with High Income
4. Payoff
Best for Paying Off Credit Cards
5. LendingClub
Best Peer-to-Peer Lender
6. Best Egg
Best for Borrowers with Poor Credit
7. Prosper
Best Non-Traditional Lender

The Best Low Interest Personal Loans

There are many reasons why you may want a personal loan. Whether you want to renovate a vacation home or plan a wedding, personal loans can help you accomplish your goals.

When you search for a lending institution, look for a loan that offers a low interest rate. By selecting the best lender, you can end up saving hundreds or thousands of dollars over the next few years. 

1. LightStream: Best Loans for Any Purpose

Lightstream Logo

Pros

  • You can get an APR of just 3.49 percent.
  • LightStream lets you use loans for a wide range of purchases.
  • Terms last for 2 to 12 years.
  • Funds are available on the same day you apply.

Cons

  • LightStream works best for people with strong credit histories.
  • Quoted rates are only for autopay customers.
  • You pay 0.5 percent more if you do not use autopay.

LightStream specializes in providing unsecured personal loans. Created as a division of SunTrust Bank, LightStream’s services are almost entirely online. It offers competitive rates for applicants.

If you have a good credit history, then LightStream will probably give you one of the best rates you can find on the marketplace today. 

Unlike other lenders, LightStream makes it possible to get personal loans for a variety of purchases. You can use your personal loan to finance an adoption or in vitro fertilization. LightStream even lets people apply for personal loans if they want to use the money to buy a horse. 

You can apply for a loan worth $5,000 to $100,000. Then, you can select loan terms ranging between 2 and 12 years.

Depending on your credit history, you will pay an interest rate of 3.49 to 16.79 percent. If you do not use autopay, you will have to pay an interest rate that is 0.5 percent higher than the original quote you receive. 

One of the nice things about LightStream is how easy the application process is. You can use your mobile device or computer to read and sign loan agreements. The process is almost entirely online, and you can get your funds on the same day you send in your application. 

One of the downsides of using LightStream is the prequalification process. LightStream does not have a fully online prequalification process. In addition, you will also need to have several years of credit history in order to qualify for one of their loans. 

LightStream makes up for this by including a co-signer option. If you want a lower rate or cannot qualify on your own, getting a co-signer is a useful alternative. The debt-to-income ratio you need depends on what you will be using your loan for. 

2. Upgrade: Best Lender for Online Applications

Upgrade Logo

Pros

  • Loans offer interest rates of just 6.98 percent.
  • Funds are available within one day of finishing the verification process.
  • You can get a loan decision in minutes.

Cons

  • Upgrade has origination fees of 1 to 6 percent.
  • This is not a good lender for people with poor credit.

If you want a fast, easy application process, Upgrade is a good lender to work with. The online application is just one page in length. Once you send in your application, you can get a loan decision in just a few minutes.

This loan is intended for people who have fair credit or better. If you have poor credit or no credit, it is probably not the best option. Once you finish the verification process, you can get the funds you need within just a day. 

Depending on your financial history and the loan terms you want, you can get an interest rate between 6.98 percent and 35.89 percent. Upgrade offers loan terms between three to five years in length. You can ask for a loan amount between $1,000 and $50,000.

With this money, you can refinance your credit cards, pay for home improvements, make a major purchase or consolidate your debt. 

There is one important caveat about Upgrade that borrowers need to remember. When you get an Upgrade personal loan, it comes with an origination fee.

This fee is generally between 1.5 and 6 percent. It gets deducted from your loan funds, so your overall funds will be less than the actual loan amount. 

While some loans prefer applicants who have excellent credit histories, Upgrade focuses on the big picture. In order to get this loan, you will need to have a good cash flow.

If you have a good debt-to-income ratio and cash flow, you can have fair credit and still get approved for this loan. Once you qualify for the loan, you can use some of Upgrade’s tools for building credit as well. 

3. SoFi: Best Lender for Wealth Management

sofi loans logo

Pros

  • Loans are available for up to $100,000.
  • SoFi offers extremely low interest rates.
  • You can enjoy an entirely online loan process.
  • SoFi does not have prepayment penalties or late fees.

Cons

  • There is not an offline application option available.
  • The maximum loan term is just seven years.

With SoFi, you can find interest rates ranging between 5.99 and 18.82 percent. SoFi also offers loan terms between two to seven years. Depending on your income and credit history, you may qualify for a loan between $5,000 and $10,000.

SoFi has an entirely online lending process. While this means the entire process is extremely convenient and fast, it could be an issue for people who are not comfortable with filling out online forms. Because the loan process is online, SoFi is able to pass on the extra savings to its customers. 

Unlike some companies, SoFi does not charge prepayment penalties or late fees. They look at more than just your credit score, income and debt-to-income ratio. Instead, SoFi considers your education and career. They also look at your estimated cash flow to determine your loan amount. 

Because SoFi focuses on factors like your career and education, they strive to offer perks that help you reach your career goals. SoFi members can get help through financial advisors and career coaches. If you lose your job, SoFi will help you find a new job and will even give you unemployment protection. 

Because of its membership perks, SoFi tends to attract borrowers who have a high income. SoFi offers advantageous features like flexible payment plans and variable rates. You can even change your payment date after you sign up for the loan.

Unlike some lenders, SoFi does not offer refinancing options. This lender also lacks a direct repayment option. If you are using it to consolidate your debt, you will have to issue the payment yourself instead of letting SoFi do the work. 

If you’re an investor of any level, you’re likely to enjoy SoFi’s investment-related services as well. The platform has climbed its way to our top robo advisors report, due to its emphasis on investor education and world-class investment planning tools.

4. Payoff: Best Loan for Consolidating Credit Card Debt

payoff logo

Pros

  • Loans are exclusively designed for paying off your credit cards.
  • There are no late fees or prepayment penalties.
  • Payoff does not charge any application fees.

Cons

  • You are unable to use the loan for anything other than paying off your credit card.
  • The loan limit is just $35,000.
  • Payoff has fairly high origination fees.

If you want to consolidate your credit card, Payoff is a great choice. This lender offers loans with interest rates between 5.99 percent and 24.99 percent. You can find loan terms that last between two to five years. In addition, you can get a personal loan worth $5,000 to $35,000. 

Payoff is designed for people who are paying off their credit card debt, so you can only get a loan for this purpose. If you want to make a major purchase or pay off medical expenses, you have to go to a different lender. When you use Payoff, you never have to pay early payment fees, late fees or application fees. 

While you may not have to pay late fees, you will have to pay an origination fee. This fee is up to 5 percent, so it is a significant cost for most borrowers. The origination fee you pay will include maintenance fees and closing costs. 

If you want help getting your finances in order, Payoff features educational guides and support. It uses quizzes to assess your financial personality and goals. Then, the platform makes customized recommendations to help you succeed. 

This loan may be better for people who have good or excellent credit. Since Payoff does not allow co-signers, you will have to qualify for the loan on your own. Unlike some lenders, this institution does not let its customers get secured loans. 

5. LendingClub: Best for Peer-to-Peer Lending

LendingClub Logo

Pros

  • Loans start at just 6.95 percent.
  • You can use your loan for many different purposes.
  • There are no prepayment fees.

Cons

  • The maximum loan term is just five years.
  • LendingClub charges origination fees.
  • You must have good to excellent credit to get a loan.

When you use LendingClub, you will get an interest rate of 6.95 to 35.89 percent. You can pay off your loan over three to five years. Depending on your financial situation and needs, you can qualify for a loan worth $1,000 to $40,000. 

Founded in 2006, LendingClub is based out of San Francisco, California. In 2014, it became the first peer-to-peer lending platform to offer securities through the Securities and Exchange Commission (SEC). Since it was founded, this peer-to-peer lending platform has served as a broker between borrowers and investors. 

When you get a personal loan through LendingClub, you can use it for purposes like buying a car, consolidating debt or making home improvements.

With LendingClub, you do not have to pay prepayment penalties. Plus, the entire loan application takes just a few minutes to complete. After you apply, you can end up with funds in your account within just four days. 

In order to get a loan, you must have good to excellent credit. If you have a bad credit score, then this is probably not the best loan for you.

If you do qualify for a loan, you should watch out for the origination fees. Depending on your credit score, you may end up paying an origination fee that is between 1 and 6 percent of your total loan amount. 

LendingClub works best for borrowers who have good and fair credit. When you apply, LendingClub will look at the length of your credit history and your income. While LendingClub prefers people who have high incomes and long credit histories, the lender allows joint loan applications as well. 

While LendingClub does not offer a mobile app, it makes up for this issue with other features. If you are using the loan to consolidate debt, LendingClub will make direct payments to your other lenders. Unlike some companies, LendingClub will only run a soft credit check when you apply for your personal loan. 

6. Best Egg: Best for Those With Poor Credit

Best Egg Logo

Pros

  • You can get an APR of just 5.95 percent.
  • The online application process is simple.
  • You can receive funds within just a day.

Cons

  • The origination fees are fairly high.
  • Loan terms are only available for three to five years.

Created by Marlette Funding, Best Egg was established in 2013. With Best Egg, borrowers can enjoy having a streamless application process. From the moment you submit your application, it can take a day or less to get the funds into your bank account. 

Best Egg offers loans worth $2,000 to $35,000. If you are a qualified borrower, you can sometimes get a loan for up to $50,000. Borrowers can also get a loan term that lasts for three to five years. 

While Best Egg does not charge any prepayment penalties, it does charge origination fees. These origination fees range between 0.99 and 5.99 percent. Since this quickly adds up to hundreds of dollars, it is important to see what your origination fees are before you get a loan from Best Egg.

In general, Best Egg has fewer features than other lenders. Rather than offer a list of features and benefits, Best Egg focuses on providing borrowers with the loans they need as quickly as possible.

Because of this, it takes just a few minutes to apply. After you submit your application, you can have funding in your account within less than a day. 

7. Prosper: Best Non-Traditional Lender

Prosper Logo

Pros

  • This lender works for people with fair to excellent credit.
  • Prosper’s online application is fast and easy to complete.

Cons

  • Prosper is not made for people who have bad credit.
  • It can take several weeks to get funding for your loan.

Designed for people with fair to excellent credit, Prosper was founded in 2005. This peer-to-peer lending company serves as a middleman that connects investors to borrowers.

Because of this, borrowers have to wait for investors to invest in their loans. If there are not enough investors interested in someone’s loan, the loan process will not get completed.

Once you submit your loan, it can take several weeks for it to get funded. Investors have to choose to fund your loan. If your loan does not get funding for 70% of your requested amount within two weeks, it will be denied. Once the loan is denied, you have to resubmit your application. 

In general, you can expect to pay an interest rate of 6.95% to 35.99%. Most Prosper loans are for $2,000 to $40,000.

Unlike other companies, Prosper offers fairly short loan terms of just three to five years. Since Prosper is designed for people with fair to excellent credit, it may be difficult to get funding if you have bad credit or no credit. 

While there are benefits to getting a loan with Prosper, you should watch out for the lender’s late fees. Prosper charges a $15 late fee or 5% of your remaining loan balance if you make your payment late.

If you need help qualifying for your loan, Prosper does provide its customers with a joint loan option. You can also change your payment date if you need to. 

Which Bank Has the Lowest Interest Rates on Personal Loans?

LightStream, SoFi and Payoff currently have the lowest rates. Like any loan, these interest rates can always change in the future based on the prevailing market conditions.

At the moment, you can get a loan for 5.95% with LightStream if you use automatic payments. SoFi and Payoff have personal loans available for 5.99%. 

Once you find loans with low interest rates, the next step is comparing the various loan terms.

For example, LightStream generally offers personal loans for two-year to seven-year terms. The maximum loan amount is $100,000. While SoFi also allows borrowers to get a maximum of $100,000, Payoff has a loan limit of just $35,000. 

While a low-interest rate generally means that you will pay less money over time, there are more factors to consider. Depending on your situation, you may want a short or long loan term.

In addition, you need to find a lending institution that is willing to give you the total loan amount you need. Because of this, it is a good idea to spend time researching different loan options before you choose a specific one. 

How Can I Get the Lowest Interest Rate Possible on a Personal Loan?

Your interest rate is determined by your income and your credit history. Other than improving your financial situation, there are a few other ways you can get a better interest rate on your personal loan.

By shopping around at different financial institutions, you may be able to get a better rate. There are certain lenders that offer the best loans for those with good credit, while others will offer more advantageous loans to borrowers with lower credit scores.

Improve Your Credit History and Income

Before you start looking for a personal loan, you should work on improving your credit history, income and repayment history. Lenders give better interest rates to people who are more likely to repay their loans.

If you’re worried about your credit score, it is recommended to leverage a credit repair company to fix your credit. Such services will reach out to credit bureaus on your behalf

If you seem like a risky investment, they may give you a high rate or deny the loan completely. Lenders use risk-based pricing to create a range of interest rates, so you can get a better rate if your loan creates less risk for the lender.

Perhaps the most overlooked method of improving one’s credit score is by first ensuring it doesn’t drop. While this is resource-intensive to do on your own, there are a number of credit monitor services with excellent reputations that can help. Such services monitor credit automatically, and can alert you of indications related to identity theft and cyber attacks before they take a negative toll.

Start Shopping Around

You do not have to pick the first company that accepts your loan application. When you apply with multiple lenders, you can compare the fees, terms and interest rates they offer.

Many lenders do a soft credit pull when they give you a rate check, so it will not affect your credit score. If you want to get the best score, you should compare three to five different lenders. 

Another aspect to consider — especially with the world’s current climate stirred by COVID-19 — is how, or if, a lender can help during times of hardship. Some have strict criteria for aid, leaving borrowers to choose between making payments and buying food.

Avoid Paying Fees

Your interest rate is not the only cost you will have to pay to get your loan. Many lenders also charge an origination fee of 1% to 8%.

When you compare lenders, you need to look at their origination fees as well as the interest rate to see the total amount you will end up paying. Some lenders do not charge any origination fees, so shop around before you choose a specific company. 

Get Autopay

Many financial institutions will reduce rates by about 0.25 to 0.5 percent if you use automatic payments. While this does not sound like a lot, it can add up to significant savings during the course of your loan term. Your payments will be automatically withdrawn from your bank each month, so make sure you have enough money in your checking account to cover the monthly payment. 

Improve Your Debt-to-Income Ratio

Other than your income and credit history, lenders want to know your debt-to-income level. This ratio basically shows the total amount of your monthly debt payments divided by the gross income you bring in each month.

If you have a low debt-to-income ratio, you can get a lower interest rate. To reduce your debt-to-income ratio, you have to increase the amount of money you make each month or reduce the amount you have to pay in debt each month. 

One way you can better manage your debt is by consolidating it. A debt consolidation loan from a top lender will save you money by lowering your interest in the long run. It’ll also enable you to better manage your debt by combining several payments into one — making it less likely for you to miss a payment by mistake.

Do Personal Loans Hurt Your Credit?

Like any kind of debt, a personal loan can impact your credit score. If you use your loan properly, it can actually improve your credit.

A personal loan helps you achieve a better credit mix, which basically means you have different kinds of credit listed in your credit record. If you primarily have credit cards and revolving credit, a personal loan will help you get a monthly installment loan in your credit mix. 

A personal loan can also help your credit history by lowering your credit utilization ratio. Normally, banks look at how much of your credit card limit is used up. If you transfer debt from a credit card to your personal loan, your credit utilization rate will drop. 

Finally, a personal loan can help you create a payment history. To do this, you have to make your payments on time each month. Over time, this will improve your credit score. 

There are some potential drawbacks to having a personal loan as well. Obviously, getting a personal loan can put you deeper into debt.

If you used the personal loan to pay off a credit card, you will need to change the habits that originally got you into debt. Origination costs, late fees and other loan fees can quickly add up if you are not careful. If you end up missing payments, it will harm your credit score.

Personal loans can also hurt your credit score because they add another inquiry to your credit report. When you apply for a loan or credit card, the financial institution runs a credit check. This adds a hard inquiry to your credit score.

For the next few months, your credit score will be slightly lower. If you have too many hard inquiries, the damage can quickly add up. 

What is the Average Personal Loan Rate?

As of 2020, the average interest rate is 9.41% for personal loans. This rate will vary significantly based on your credit score, loan terms and lender. In general, personal loans have rates between 5% – 36%. 

Someone who has an excellent credit score can generally get a personal loan for 10.3% to 12.5%. If you have good credit, you will typically be offered an interest rate between 13.5% to 15.5%. Meanwhile, someone with average credit will get an average rate of 17.8% to 19.9%. 

Lenders are hesitant to lend to people with poor credit. Because of this, it may be difficult to get approved for a personal loan if your credit score is between 300 and 629. While there are some options — including guaranteed approval for those with bad credit — you may end up paying an interest rate above 30%. 

What is a Good Reason to Ask for a Personal Loan?

There are a variety of reasons why people end up getting personal loans. In most cases, people get a personal loan to make a large purchase. This could be the purchase of a tractor, land or a similar purchase. According to an Experian study, people generally got a personal loan for the following reasons. 

  • 28% of people wanted a personal loan to make a large purchase.
  • 26% of borrowers received a personal loan to help consolidate their debt.
  • 17% of loan recipients used their personal loan to make home improvements.
  • 9% of people planned on using their loans to refinance their existing debt.
  • 30% of borrowers used their loans for a different reason.

Debt consolidation and credit card refinancing are the most popular reasons why people apply for a personal loan. People also ask for personal loans so that they can pay for a wedding, medical expenses, a car, a home purchase or a vacation. In some cases, people also get a personal loan to help them cover the cost of moving or relocating to a new home. 

Technically, you can get a personal loan for any purpose. This unsecured loan does not carry restrictions on how you spend it once the money arrives in your account. Ultimately, the main limitations you face are whether a lender will approve your loan and your loan terms. 

What is the Largest Personal Loan I Can Get?

The majority of lenders offer personal loans for a maximum of $50,000 or less. There are a few lenders that give borrowers up to $100,000, but the borrower must have a high income and an excellent credit score.

In general, the individual needs to earn at least $150,000 per year to qualify for the largest personal loans. So in essence, the largest personal loan you can get is directly correlated to your income and of course, your credit score.

Does it Hurt Your Credit Score to Pay off a Loan Early?

Thankfully, paying off an installment early will not hurt your credit score. At the same time, paying it off early might not help your credit.

When the loan is open for its full term, the payments are viewed positively by credit scoring models. Each time you make a payment on time, it adds a small boost to your credit score. 

An installment loan affects your credit differently than a credit card. With an installment loan, you make a set number of scheduled payments over the course of your loan term.

When you pay off your personal loan, your account is closed. Paying off your installment loan early affects your credit score because you have one less account with a balance. In general, having one less account with a balance will boost your score slightly. 

Can You Spend a Personal Loan on Anything?

When you get a loan to buy a car or a house, there are restrictions on how you can use the loan.

With a personal loan, you generally do not have any limitations. Since this type of loan is unsecured, the lender does not require any collateral either. Once the money is in your account, you can use it however you want. 

All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on TheTokenist.io. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.

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Why Did My Credit Score Just Drop? 6 Common Reasons

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Your three-digit credit score can be the difference between being approved for a new financial product with strong terms versus being stuck with sky-high interest rates — or worse, denied altogether. So it can be incredibly frustrating when you think you’re doing well financially, only to find that your score has dropped.

Credit scores function as a snapshot of your credit history that helps lenders — and often landlords — determine how much risk you pose as a borrower or renter. The better your credit score, the lower your interest rates and larger your credit limits will be, while the opposite is true the lower your score is. But credit scores also frequently change, and sometimes not for any obvious reason.

“Scores fluctuate all the time depending on how the information in your credit history is evolving and changing,” says Rod Griffin, senior director of consumer education and advocacy at Experian.

Here are the six most common problems that can lower your credit score, according to Griffin:

1. You’ve missed payments

The most common reason that peoples’ credit scores have dropped is because they missed a payment, Griffin says.

“If you’re unable to pay a debt as agreed, it’s going to have a negative effect,” he says.

Missing payments are reported to the major credit bureaus once they’re 30 days overdue, so it won’t impact your credit score if you make the payment a few days late (although you will probably have to pay late fees). But if you don’t make at least the minimum payment after 30 days, it can seriously damage your credit score: According to credit damage data from FICO, a person who has otherwise never missed a payment could lose over 80 points after missing a payment for over 30 days and another 50 points after 90 days.

That’s why it’s important to at least pay the minimum required amount each month when the option is available, even if you can’t afford to pay off your entire balance. While you ultimately will need to pay the full amount in order to avoid having a high credit utilization rate (more on that later), your payment history is often the most important factor in determining your credit score.

You should also always contact your lender if you’re struggling to meet your mortgage, student loans or car payments in order to avoid defaulting. You may be able to reduce your monthly payments or have the loans placed into forbearance, which won’t impact on your credit score.

2. Your credit utilization rate is too high

Your credit utilization rate is the ratio between how much credit you use vs. how much you have available. The standard goal is to keep your credit utilization rate below 30%. You might have an excellent track record of making payments on time and in full, but if you only have one credit card and you’re using 90% of the total amount, your credit score is still going to suffer.

Griffin advises that borrowers in this situation open up another account and split your usage between the two because “if you’re using your credit well and can keep utilization low on both cards, you’ll likely see scores improve over time.”

But keep in mind that this strategy can also backfire if you can’t keep the utilization low on both cards. Then, you’ll likely end up lowering your credit score because you’ve maxed out your cards and are carrying a high balance each month, leading to a high utilization rate. That’s where making just the minimum payments on your cards may not be enough. You’ll need to pay off more than the minimum amount if you want to lower your utilization rate in order to raise your overall score.

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3. You recently took out a new line of credit

You might’ve seen a drop in your credit score if you’ve recently been accepted for any new lines of credit. The amount your score actually drops will depend on how large the loan is and your overall credit history, but it’s one of the most common reasons peoples’ scores go down, according to Griffin.

It may not make sense at first glance: You had a good enough score to secure a low-interest mortgage loan, so why would it suddenly drop down now that you have it? But from a creditor’s perspective, Griffin says that while you may have good credit history, they have no idea whether or not you’ll continue to make the required payments long-term.

The good news is that if your credit score has taken a dip after being approved for a new loan, once you consistently make payments over the next few months, it will likely rebound or even grow as you build a longer credit history.

One piece of common knowledge about building credit is that your score tends to take a hit whenever a “hard” credit check is run on you, usually when applying for a new line of credit or apartment. But according to Griffin, a credit inquiry alone is unlikely to have a major impact on your overall score — maybe 10 points at maximum.

“You might see your scores dip a bit initially, but inquiries are really the least important factor in credit scores and will have the least impact,” he says.

If your credit score does appear to have taken a significant hit after applying for a new line of credit, then you “have far more serious issues causing your scores to drop than that inquiry,” Griffin says.

Consider when the last time you checked your credit score was and your entire credit history before worrying too much about how much one application might affect your score.

4. You recently filed for bankruptcy

It might seem like a no-brainer, but yes, declaring both Chapter 13 and Chapter 7 bankruptcy will absolutely have a direct effect your credit scores.

“Declaring bankruptcy means your scores are going to drop a lot,” Griffin says. That’s because when you file for bankruptcy, you’re essentially telling creditors that you’re a major credit risk in exchange for wiping out debt that you’ll never be able to pay back. If you file for bankruptcy with a good credit score, you could see your credit score drop by more than 200 points.

Getting your credit score back up after filing for bankruptcy will take a lot of time and effort, but after seven years the bankruptcy will be removed from your credit report and you’ll be able to get approved for more credit-building financial products.

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5. You’re looking at a different credit score than usual

The credit score you access through your bank may not be the exact same as another provider, even if you look at them on the same day. If your credit score appears to have taken a hit, you’ll want to make sure that you’re looking at the same score as usual.

The two major consumer credit scoring companies are FICO and VantageScore; while they both use the same 300 to 850 scale for generating scores, the way those scores are calculated can be different. For example, VantageScore factors in items like your “pattern of behavior” (i.e. putting in effort to pay off an existing card balance over time) while FICO scores do not. But even within one scoring system there can be discrepancies between your score, depending on which scoring model is being used.

“It’s critical that you know what score you’re looking at. Not just if it’s a FICO score, but is it the same FICO score as the one you’re used to,” Griffin says.

For instance, a typical FICO score has a score range between 300 and 850, with 850 being the best possible score. But a lender for an auto loan will often use the specific FICO Auto Score, which goes up to 900 points, so your score could appear dramatically different on that report when you’re preparing to buy a car.

6. You’ve been a victim of fraud

If none of the above applies, but your score has dropped significantly, then you may want to take a good look at your full credit report for any suspicious activity. Purchases you don’t remember making, loans taken out in your name and maxed out credit cards you never signed up for are major red flags of identity theft.

“Someone maxing out a fraudulent or stolen account could certainly affect your credit score,” Griffin says. “That’s why we always encourage people to check their credit histories regularly.”

Unlike most of the other reasons that your credit score might drop, if you’re a victim of identity theft, you will be able to remove the activity that’s hurting your score from your credit report. But it’s better to catch suspicious activity sooner rather than later in order to avoid spending hours trying to verify the legitimacy of every item on your report.

Enrolling in a free credit monitoring service like those offered by Experian and Credit Karma can help you catch and protect yourself from fraud.

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More from Money:

7 Easy Ways to Improve Your Credit Score Right Now

FICO vs. VantageScore: The Difference Between the Credit Scores and Why It Matters

Does Student Loan Debt Affect Your Credit Score?

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Best Credit Repair Services – Which One Will Work In Your Best Interest 

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A credit repair can remove negative marks from your credit report, so you can buy a house or a car you’ve set your heart on.

With so many credit repair companies out there, how to choose the best one for you?

Because I recently needed help from a credit repair company, I talked with my friends and did countless hours of research. I’ve narrowed it down to the top five best credit repair companies, and here’s what you should know about each one.

Top 5 Best Credit Repair Companies

  1. Credit Saint – a highly reputable company offering an initial free consultation 
  2. Lexington Law – offering all sorts of legal advice and support
  3. The Credit People – with a low-fee trial week offer
  4. Credit Repair – a variety of packages to help you clean up any negative score
  5. Credit Firm – offering a legal audit of your credit reports

Our Top Picks

1. Credit Saint

Credit Saint has an A+ rating from the Better Business Bureau. This credit repair company was founded in 2007, and since then, it has helped thousands of customers improve their credit scores.

What makes them stand out is that they offer a free consultation to talk about your credit score and identify any negative points. You’re under no obligation to pay for this service. 

If you choose to continue working with Credit Saint after the consultation, they will contact the major credit bureaus on your behalf –  just to remove any inaccurate information from your credit report.

Credit Saint is an aggressive credit repair service, but they’re aware that different people have different needs. That’s why they offer three service packages:

       Credit Polish is their basic package and includes five challenges of negative items per cycle, free score analysis, challenge identity theft, charge-offs, challenges to 3 credit bureaus, and a credit score tracker.

      Credit Remodel includes everything as the Credit Polish package, and some additional services, such as ten challenges of negative items per cycle, credit Experian monitoring, escalated information requests

and the challenges, such as bankruptcies, late payments, repossessions, and charge-offs.

       The most aggressive package available: It includes everything as the previous two, plus an unlimited number of challenges of inaccurate items, cease and desist letters on your behalf, and judgment disputes.

Credit Saint bought me with their free credit consultation, hundreds of positive user reviews, and because they charge less than other companies, but offer more services.

Pros:

  • 90-day money-back guarantee
  • Three packages at affordable rates
  • Online sign-up
  • Online account for tracking Credit Saint progress

Cons:

  • Not available in all states

>>> CLICK HERE to check out Credit Saint TODAY

2. Lexington Law

If you need legal help, Lexington Law might be the one for you, as this is a real law firm. 

It was founded in 1991, so it’s the credit repair company with the most experience in the US. Lexington Law has had 10,000,000 negative items removed from their client’s credit reports in 2017 only.

This credit repair service employs lawyers and paralegals that use specific laws to protect your credit score. They do this by obtaining a copy of your credit reports and finding what’s bringing your score down.

Then, they send disputes to challenge the inaccurate items. What I liked is that they’ll give you an online dashboard, so you can track what’s happening with your credit score every step of the way.

Lexington Law will assign you your own rep, usually a paralegal. You can schedule an appointment with your rep even beyond business hours, which comes in handy if you’re very busy.

Same as other credit repair services, Lexington Law offers three credit repair packages you can choose from.

        This is their most affordable package, and it includes challenging negative items from three major credit bureaus and creditors.

       Concord Premier package includes everything as the standard package, as well as the removal of hard inquiries, TransUnion alerts, and score analysis.

      The most expensive package Lexington Law offers includes services such as identity theft protection, personal finance tools, cease and desist letters, and FICO score tracker.

Pros:

  • Online customer service
  • Free credit report consultation
  • Online dashboard for following the progress

Cons:

  • No Better Business Bureau accreditation 

>>> CLICK HERE to check out Lexington Law TODAY

3. The Credit People

If you’re looking to try out a service without making a commitment, then you should consider The Credit People.

You can pay $19 to try out this credit repair agency for one week. If you like it and want to continue with them for longer than a week, you can choose between two membership credit repair services:

a monthly fee or a flat-rate membership for six months.

Both credit repair services include:

  • $19 fee for the first week
  • Debt inquiry and validation
  • Communication with creditors
  • Unlimited number of credit disputes
  • 6-month satisfaction guarantee

The Credit People claim to have removed about 1.5 million negative items from their customers’ credit reports. While no credit repair service can guarantee that you’ll improve your credit reports, The Credit People’s website claims that they have helped their customers’ credit reports increase between 55 and 187 points.

The reviews we checked especially praised their customer service and the fact that once you sign-up, you get a personal online account, which is accessible from any mobile device or a computer.

You’ll also receive notifications, so you’ll know right away if something changes in your credit repair account.

Pros:

  • FCRA certified consultants
  • Toll-free customer support
  • Account accessible at any time

Cons:

  • No financial management tools

>>> FIND OUT more about The Credit People TODAY

4. Credit Repair

The appropriately named Credit Repair, since 2012, the agency has removed 1,800,000 harmful items from the client’s credit reports.

After a user signs up, Credit Repair charges them $14.99 to check their credit report to identify invalid, confusing, and misleading information on it.

Next, the Credit Repair team creates a custom credit repair plan to remove all the negative items and help your credit scores.

All legitimate credit repair companies work on the same principle, and that’s to offer their customers several packages. Credit Repair offers three packages:

This is the most affordable option. It costs $14,94 to sign-up, and there’s a monthly fee, one of the cheapest in the credit repair industry.

If you have a few negatives in your credit history, this could be the best credit repair option for you, as the package includes 15 credit challenges and 3 creditor disputes monthly.

This package includes:cease and desist letters to creditors, $25,000 worth of Identity theft protection, 24/7 credit monitoring, and six interventions to three credit reporting bureaus.

Apart from containing everything the first two packages do, this premium one also includes:

$1 million in identity theft insurance, personal finance tools, 19 negative items challenged, and a monthly FICO score.

Pros:

  • Free consultation
  • Available online and has iOS and Android apps
  • 50% discount if your friend or a family member signs up

Cons:

  • Lack of clarity on who are their experts

>>> FIND OUT more about Credit Repair TODAY

5. Credit Firm

Like most credit repair companies, Credit Firm also offers a free consultation, including a review of your credit history and a step-by-step action plan that’ll help you improve your credit score.

Credit Firm is a highly reputable company that has been around since 1997, founded by a group of attorneys. 

What you may like best about them is that they offer something no other services in the credit repair industry do — a legal audit of your credit reports by a licensed attorney.

Not only will an attorney review your credit report, but also all documents the company sends to creditors for you.

While other credit repair services offer two to three credit repair packages, Credit Firm offers only one credit remodel package. 

In this package, you get an unlimited number of disputes a month, which is a fantastic deal seeing how other credit repair companies often limit or raise their price as the number of disputes increases.

Pros:

  • Toll-free customer service available 24/7
  • Highly rated by Better Business Bureau
  • No upfront fee

Cons:

  • No debt settlement service

>>> FIND OUT more about Credit Firm TODAY

How Do You Pick The Right Credit Repair Company?

There are several factors you should consider when choosing credit repair companies.

1. Reviews and Complaints

Always check the reviews and complaints from sources such as:

  • Better Business Bureau
  • Consumer Financial Protection Bureau
  • Google reviews

Pro tip: Don’t check the reviews on the direct website only, but go on third-party websites as well to make sure the reviews you’re reading are authentic.

2. Services Credit Repair Companies Offer

The majority of credit repair companies have tiered packages, which offer different services. 

The most important things you should take into consideration are:

  • The packages offered
  • The number of disputes per month
  • Monthly fee
  • If there’s credit monitoring
  • Identity theft insurance
  • Credit repair software
  • Goodwill letters asking creditors to remove negatives items sent to credit reporting agencies

3. X Day Money-Back Guarantee

The Credit Repair Organizations Act doesn’t allow credit repair companies to guarantee results. 

But, the Credit Repair Organization Act doesn’t prohibit companies from usually offering a 90-day money-back guarantee if there aren’t results after a certain time period. 

My two cents: legitimate companies should offer a money-back guarantee, which is why I gave these companies an advantage when choosing the one for me.

4. Cancellation Policy

Choose a company whose cancellation policy is free and available at any time.

Did you know? All credit repairing agencies are under obligation to tell the truth about their services.

You, as a customer, are entitled to a mandatory cancellation period, which is the first three days.

If you believe there’s a scam, you can contact the Consumer Financial Protection Bureau, and they can help you.

What Is the Best Credit Repair Company for You?

A credit repair company will help you recover your credit score so you can finally get that purchase you’ve been thinking about. Moreover, you can get financial guidance so that you never end up in the red. 

All of these companies are legitimate, successful, and can help you get a better credit report, but my recommendation is Credit Saint. It’s trustworthy, it has great customer reviews, and most importantly, it has three packages suited to everyone’s needs.

Plan for a better future, and contact a credit repair company that best fits your needs today. And don’t forget to share your experience in the comments below. 

>>> TRY Credit Saint TODAY (CLICK HERE) 



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Credit Repair Companies

Sky Blue Credit Repair Review (2021): 🔎 Fees/Service/Results Analyzed

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All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.

Looking for the best way to improve your credit? The process can seem overwhelming and full of headache, with a lot of time wasted and little progress made.

Luckily however, there are legitimate options that can raise your credit without much work. A number of people are turning to them now, more than ever.

With the effects of COVID-19, more people are looking to increase their credit scores to secure better credit and loan rates. This is so much the case that the credit repair industry is expected to boom by 2025. At the same time, BEA findings suggest consumers are becoming more thoughtful about how they spend their money, likely because they have either already lost, or are worried about losing, their jobs.

Essentially, we want more bang for our buck.

Unfortunately, the increase in demand for credit repair services will also bring an increased amount of fraudulent cases — so how can you recognize the frauds?

Sky Blue Credit Repair is a leading credit repair company, with a strong track record of helping customers get fantastic results.

In this review, we’ll go through what exactly Sky Blue Credit Repair can do for you. We’ll also highlight all the pros and cons, and outline how much you’ll have to pay for the service. ⏬

Sky Blue Credit Repair is a leading credit repair company. The customer service team is consistently raved about in reviews. The firm offers a clear pricing structure, and legitimately offers the best value in the credit repair industry.

Fast Facts

  • Fees: $79 per month
  • Highlight: A simple, transparent structure with high value
  • Best for: Those looking for a customized service

Company Rating

  • Fees: 9/10
  • Communication: 9/10
  • Dispute Process: 9/10
  • Customer Service: 9.5/10
  • Credibility & Trust: 10/10
  • Overall: 9/10

What is Sky Blue Credit Repair? 🔵

Based in Boca Raton, Florida, Sky Blue has been around since 1989 offering customers a credit repair service. Sky Blue Credit Repair is known to be one of the leading credit repair companies, with very few competitors able to come close to its offer.  Customers across 50 states, looking to repair, build, or develop their credit reports can benefit from Sky Blue Credit Repair.

Sky Blue Overview & Summary

Sky Blue Credit Repair is defined by several key points, which we’ve rounded up to the top six:

  1. Sky Blue helps clients to raise their credit score by analyzing their report and correcting any inaccuracies or incorrect information that may be on it. 
  2. According to Sky Blue Credit Repair, you can start the process of repairing your credit for an initial fee of $79, and then $79 per month. Couples can get a discount price of $119.
  3. Sky Blue Credit negotiates with your lenders or disputes up to 15 items on your report per month.
  4. Customers can expect a knowledgeable customer service team, and a 90-day guarantee, something that is unique in the industry.
  5. As the effects of the pandemic continue, customers should know how to recognize potential scams.
  6. There are some key questions you should ask yourself before hiring a Sky Blue Credit Repair, like what is your budget, and if you’ll likely need additional services.

How Can Sky Blue Credit Repair Help? 🆘

Sky Blue Credit Repair helps clients raise their credit score by correcting any inaccuracies or incorrect information that may be on their credit report. If any exist, raising your credit score will be almost impossible, even if you’re doing your damn best to be the ideal consumer.

Sky Blue Credit Repair helps you remove any incorrect info from your credit report.

Sky Blue will request copies of your credit report from three major credit bureaus including, TransUnion, Equifax, and Experian. The company will then go through every word in every sentence to ensure the report doesn’t include anything that can’t be confirmed or verified.

Should anything of the sort exist, Sky Blue will work with you to communicate the discrepancies to the relevant authorities. In it, the letters will highlight particular information that needs to be removed from the report.

What are the Pros & Cons of Sky Blue Credit Repair? 📜

We’ve created a list of the best and worst of Sky Blue Credit Repair:

Pros

  • Knowledgeable and professional customer service
  • Incredible value when compared to the competition
  • Track record of getting results
  • Fast processes
  • Handles the work for you
  • Individual, personalised communications
  • No upselling

Cons

  • It’s always possible to pursue DIY credit repair instead of paying a company to do it for you – but if you have bad credit and want to pay for credit repair, there’s little downside with Sky Blue

What Are Sky Blue’s Fees? 💳

So, how much does Sky Blue Credit Repair cost? And is it worth it to get better rates on your debt consolidation loan.

According to Sky Blue Credit Repair, you can start the process of repairing your credit for an initial fee of $79, and then $79 per month. Couples can get a discount price of $119.

Importantly, there’s no upselling or hidden fees with Sky Blue. This factor sets them apart from the competition.

Sky Blue also doesn’t charge any extra fees for credit reports or monitoring. Before, customers were charged a fee of $39.95 per credit report they pulled from each of the three-bureaus, or a monitoring service fee of $14.95.

💡 Keep in mind: You will more than likely need several report pulls throughout a credit repair process, if only to observe any potential changes in your FICO score.

How Does Sky Blue Credit Repair Work? 🔍

To start the process with Sky Blue Credit, fill out the enrollment form on the Sky Blue website. To register you will need to fill in the following information:

  • Your name
  • Street address
  • Phone number
  • Email address

First off, an agent will speak to you to determine what areas you want to focus on in your credit report. Then it will get your credit reports and begin a line-by-line review. The company has the experience to notice even the smallest discrepancies that could be affecting your credit. 

Sky Blue credit uses the information from its review to devise an action plan that will hopefully result in an increased credit score. The company also offers some ways you can start seamlessly rebuilding your credit with software.

How Sky Blue’s Credit Repair Works 🤔

Sky Blue Credit negotiates with your lenders or disputes up to 15 items on your report per month. The company utilizes its legal tools to argue for the removal of the items. Each month, the company will begin the process for the removal or correction of information in your report until you are satisfied that your credit report is at a fair standard.

Sky Blue also offers a 35-day dispute cycle.

In addition, Sky Blue will send you tips on how to monitor your credit, to raise your credit score yourself, including ways you can begin raising it naturally. 

Interested in credit monitoring? Get started with the top credit monitoring services.

Where Sky Blue Credit Repair Shines ⭐

Now that we’ve gone through the major aspects of Sky Blue Credit Repair, we’re going to go through what makes Sky Blue really stand out. 

1. Responsive Customer Service ☎️

“Let me just say how awesome your customer service department is. They handled everything, answered all of my questions and got me pointed in the right direction. Your credit repair company is the gold standard!” – R.H.

“Thanks again for helping me repair my credit. Everything has been amazing and I’m really looking forward to seeing more results.” – H.J.

The sky blue customer service team is both knowledgeable and responsible. Quite impressively, the firm holds an A+ rating with the Better Business Bureau (BBB).

The BBB offers opinions on how a company will most likely interact with its customers. The company takes and uses information from business and public data sources to assign a rating from A+ (highest) to F (lowest).

Many reviewers have reported the company as being up-front when it believes the customers credit report wouldn’t benefit from a professional look.

With these cases, Sky Blue recommends additional steps the customer could take to improve or alleviate the current credit concerns they have (free of charge).

Finding a company that helps people, regardless of profit, is a rarity.

Lastly, one other thing on this topic that caught our eye: Sky Blue is known to call customers to let them know they will no longer need to pay, because it has finished its work.

2. 90-Day Guarantee 📅

Sky Blue Credit Repair’s 90 day money back guarantee will come as a welcome relief to those who are weary about handing over cash to companies at the moment. Especially,  when the industry is expected to boom by 2025, which will no doubt increase credit repair fraud.

If anything, this guarantee only proves the company’s reputability. Offering a money-back guarantee in this industry certainly isn’t the easiest thing to do. And for good reason: Credit repair is so individual and personal for person to person.

Essentially, for a company to have the guts to offer this to new customers, it must be confident that it can deal with the most complex credit issues. Sky Blue’s record confirms why it has this confidence. And, 90 days is a more than generous length of time.

Honestly, the 90-day guarantee says a lot. It essentially says that if Sky Blue doesn’t produce results for you, then you don’t need credit repair in the first place.

However, their initial consultation will be enough to know whether or not they can help. If they can’t — they’ll tell you up front, as they don’t want to work for 90 days without any results.

Wondering how much of a refund you actually get within that time period? The company doesn’t just refund the initial set up fee, it refunds all payments made.

😌 Peace of mind: With Sky Blue Credit Repair’s 90-day guarantee, unsatisfied customers will get a refund of all payments made, including the initial set-up fee.

We’re recommending Sky Blue because it’s a beacon of a company in an industry filled with pitfalls.

Sky Blue is a reputable company in the midst of an industry with pitfalls. However, should you have any doubt or concerns, it might bring you comfort to know that you will get a full refund if you’re unsatisfied. This is something that Sky Blue’s competitor’s do not offer.

Now, let’s get onto something a bit less exciting.

3. Sky Blue Does the Hard Work for You 💪

A Sky Blue representative will go through and identify any items that should be removed from your credit report. This is the most time consuming part of the process.

Typically, companies will require that you do this complicated work yourself. Sky Blue however, looks after it for you.

The company is also renowned for identifying smaller, more subtle inconsistencies that may otherwise go unnoticed.

4. Disputes Handled Internally 🤐

Sky Blue disputes with the credit bureaus without any need for your intervention. While it is technically possible to dispute inquiries yourself, it is a difficult and time consuming process. Sky Blue looks after the disputes for you, and will make sure to include your contact information along every step of the way. 

This means that you will receive responses from the credit bureaus directly, for no additional fee. This is far more efficient than waiting on a representative to forward notices on to you.

5. Sky Blue’s Processes Are Fast 💨

There’s no denying it; Sky Blue works at a strong pace. The company disputes up to 15 inquiries per month. That’s nothing to be sneered at!

This is one of the quickest credit repair processes out there. That said, it finds the right balance of communication with the bureaus because too much can have the opposite effect desired and could potentially put you back a few steps.

6. Assistance & Education 🏫

Sky Blue helps customers find ways to improve their reports and give their credit scores a boost. Generally, lenders are looking for specific items on your credit report, including missed payments and delinquencies. Sky Blue will assist you to find these issues, and then they’ll get to work on eliminating them.

While, of course, the content in your credit report should not be overlooked, most financial institutions look at your score, and that’s it. Sky Blue will give you the right advice so that you can take immediate action.

7. Additional Services ⚙️

Sky Blue Credit Repair offers additional services that come as part of the package (at no additional charge. These include: 

On top of credit repair services, Sky Blue Credit Repair offers:

  • Goodwill letters
  • Debt validation
  • Cease and desist letters

8. Customized Disputes ✉️

In a lot of cases, companies send what’s known as “form mail”. This means that every letter sent to the bureau is the same, templated, message, with no differentiating factor from customer to customer.

All correspondence sent by Sky Blue to the 3 bureaus is customized and individual from client to client.

An Alternative to Sky Blue Credit Repair

We’ve gone through the best of Sky Blue Credit Repair. But maybe the firm isn’t what you’re looking for. Read below to see if this applies to you and your unique situation.

It Might Feel a Little Unnecessary

If you have a less than ideal credit score, there are things you can do to help yourself, free of charge. Money’s tight right now, so why should we spend it on something we could potentially do ourselves? 

With more companies on the edge of bankruptcy, we should also be aware that getting lenders to front up the cash for loans could become increasingly more difficult. This could make having a good credit score more important than ever. 

However, some customers might prefer to put in the work and time themselves, especially those of us being more cautious of where our money goes.

Yet if you don’t have the time — or the expertise — but need to improve your credit score, we firmly believe you won’t go wrong with Sky Blue.

How to Notice & Avoid a Credit Repair Scam 🧐

Those of us who do choose to go with credit repair companies should be aware of those too-good-to-be-true advertisements. We’ve all seen them – the ones that promise us a “new credit identity” i.e. a fresh beginning for our credit history. It makes us really wonder (and dream) about whether this will catapult us to great rates. Reality is: it’s a scam.

🔔 Did you know? Consumer complaints to the CFPB have seen dramatic increases in the midst of the COVID-19 pandemic. In March, the CFPX received 29.494 complaints about different types of alleged consumer mistreatment – this number hit a record breaking high of 37.926 by June.

With the credit repair industry expected to boom as a result of COVID-19, fraudulant credit repair cases seem to be already on the rise. In the past few months, complaints to the CFPB have drastically increased month on month.

In March, the CFPB was inundated with 29,494 complaints around varying alleged consumer mistreatment – this number climbed to a staggering 37,926 by June.

Sky Blue Credit repair is a company that doesn’t offer any magic solutions, but rather keeps your expectations clear.

Keep in mind, these too-good-to-be-true companies usually are. A lot of the time, they sell Social Security numbers illegally. If you were to go ahead and use a number that wasn’t yours, you could end up with some hefty fines, or even locked up – it’s that serious.

Signs of a Credit Repair Scam 💳⚠️

Scams catch out so many people for a reason, they’re usually well-thought out, and quite deceiving. But what exactly are the signs of a scam? To help you stay on your toes, here are some ways you can recognize a potential credit repair scam:

 A Credit Repair Company Should Not

  • Insist on being paid before any work is completed
  • Advise you not to contact the credit reporting companies yourself
  • Advise you to dispute information on your credit report – even when you’re sure it’s correct
  • Advise you to submit false information when applying for credit or a loan
  • Be unclear about your legal rights when explaining what they will do for you

What Are Your Credit Rights? ⛔

The Credit Repair Organization Act (CROA) is your best friend in this case. This Act states that it is illegal for credit repair companies to lie about what they can do for your situation, and to charge for work before it’s completed the service/s.

This is enforced by the Federal Trade Commission, and requires credit repair companies to be clear about the following:

  • Give you a written contract that clearly explains your legal rights and details what services the company will complete
  • Outline your right to cancel the service within three days, without a fee
  • Tell you when you should expect to see results
  • Highlight all fees involved, including the overall cost
  • State what exactly is guaranteed
  • Have an easy cancellation policy in place

What can you do if a credit repair company you’ve hired doesn’t do what it said it would? Here are some options to consider:

  • Sue the company in the Federal court to retrieve any fees you paid, or for any losses incurred, whichever is more.
  • Seek punitive damages – money the company has to pay for violating the law
  • Join others in a class action lawsuit against the company. If you win the company is required to pay your attorney fees.

Reporting Credit Repair Fraud

There are two ways to report a credit repair scam: 

  • State Attorney General
  • Federal Trade Commission

State Attorney General ✅

In a lot of states, there are laws governing credit repair companies. If you are unhappy with the service you’ve been given, report it to your state Attorney General (AG) or your local consumer affairs office.

Federal Trade Commission ✅

You also have the option of filing a complaint with the Federal Trade Commission. The FTC can’t resolve any credit disputes for you, but it can take action against the company if it has a pattern of violating the law. 

Complaints can be filed on the FTC website directly or call 1-877-FTC-HELP.

Is Sky Blue Legitimate? 👍

Now that you know what to look out for to avoid a scam, the question remains, is Sky Blue a trustworthy company and should you use them?

Sky Blue ticks all the boxes of a reputable company. It’s credible, it has a track record of positive results, and its pricing structure is clear.

The company really sets itself apart in the following 2 ways that we highlighted earlier:

1 . Professional and knowledgeable customer service

2. 90-day guarantee

As we mentioned, finding a company that offers a 90 guarantee is rare in this industry. Customers of Sky Blue consistently describe the customer service team as: Professional, knowledgeable, friendly, and prompt.

But surely, not everyone needs to use a credit repair company? Right. Here’s a breakdown of who should consider using Sky Blue Credit Repair

Who Should Use Sky Blue? 🤵

To know if you should go ahead and hire Sky Blue Credit, ask yourself the following questions: 

  • What is my budget?
  • Will I need additional services, like identity theft or credit report monitoring?
  • Do I prioritize getting individual service or having a bigger company to look after my account?
  • What do I hope to achieve by using this service?

Is Sky Blue Worth It? 🤷

BEA estimates show that we have less credit card debt and are taking a more cautious approach towards spending. In other words, we are spending less.

Okay look, here are the facts: Credit card debt has decreased during COVID-19. So, you may not need a credit repair company.

In June, the Bureau of Economic Analysis (BEA) released estimates that disposable personal income decreased $911.1 billion (4.9%) and personal income decreased $874.2 billion (4.2%) in May. In other words, credit card debt is down because when you spend less, you spend less. 

At the same time, the BEA found that the U.S personal savings rate was almost two times more in May (23.2%) than in March (12.6). This suggests that many consumers are being more cautious with their money. If this is you, it’s important to make the best decision for you, and your money.

If this is true, you should be on top of all the facts before you invest your money into a credit repair service. Is it really worth it?

Is Sky Blue Worth It
Weigh up all your options before deciding to go with a credit repair company.

Here are some things to keep in mind when weighing the options of using a credit card repair company versus not using one.

Do You Have Room for Improvement? 🚀

If you have bad credit, or multiple issues on your credit report then there is a better chance of raising your FICO score, since more things need to be corrected. If you don’t take action to improve your FICO score, you could be stuck with a bad credit loan should you need to borrow funds.

You also need to think about what expectations you have and how much of an improvement you’re looking for. Look at your credit report and see if there is room for improvement.

It Can Cost Time and Money ⏱️💵

Credit repair companies can only dispute items a few times a month before they are reprimanded by a credit bureau, so if you have a good few items you want corrected, it can take some time, which will cost you.

On the other hand, if you only need to remove a few items then it should be a pretty quick process, which would cost less.

There is No Guarantee Your Credit Will Improve 🙅‍♂️

Any improvements made to your credit will be determined by the credit bureaus, not Sky Blue Credit Repair. For this reason, there is always the possibility that the requested changes will not be approved. Before you go into the process, it’s important to understand that your money might not result in a whole lot of change. 

With this in mind, it might be good to try to read and understand your credit report yourself so you have a good idea of what it entails before making your decision.

How Much Will Sky Blue Help My Credit? ☝️

While the company won’t be able to raise your credit without your help, it is a legitimate company with a strong track record of results.

Once you meet with a Sky Blue Credit Repair representative, they will go through the entire process and how long it should take, your rights, along with what they can do for you. Everything will be explained very clearly before any work begins. 

Is Sky Blue Credit Right for You? 🥇

Sky Blue is renowned for going above and beyond for its customers. It even offers advice to people, free of charge. The credit repair process is quick, affordable, and customers can expect to be communicated with by the credit bureaus directly.

Although we have highlighted the company’s website as being basic, it is something that could be easily fixed, and does not directly impact the service offered. 

With more potential fraudulent activity expected in the industry, customers should know how to recognize a scam, and choose a known and trusted credit repair company. Sky Blue could easily be the best in America.

Sky Blue Credit Repair FAQs

  • How Does Sky Blue Credit Repair Actually Work?

    Sky Blue works by disputing negative marks on clients credit reports with three leading credit bureaus. The credit bureaus communicate directly with you so you don’t need to wait on Sky Blue to forward on any messages. This is a good way of helping those with bad or fair credit get better rates for personal loans.

  • How Can I Get Started?

    To get started, go to the Sky Blue Credit Repair website and fill out the form. This will only take a few minutes.

    When you sign up, you’ll get an email with instructions on how to get them your credit reports. Once you receive the reports, the process will start.

  • How Long Does It Take to See Results From Sky Blue Repair Credit?

    This will depend on several factors, including the number of accounts on your credit report that need to be disputed. How quickly the bureaus respond will play a part, too. In comparison to others though, Sky Blue Credit Repair have quite a quick process.

  • Do They Offer a Guarantee?

    Yes, Sky Blue Credit Repair offers a 90-day money-back guarantee. If you are not happy with the service, you will get a full refund.

    A specific outcome can never be predicted or promised. However, Sky Blue has a record of doing all it can to maximize the possibility of outstanding results.

  • Which Items Will Sky Blue Remove From My Credit Report?

    Understanding what Sky Blue potentially can and cannot remove from your credit report is important. 

    Any debt or legitimate inquiries owed should not be disputed. However, it is required that companies give evidence of the debt owed, or authorised an inquiry. If a company can’t do this, you might be able to get it removed.

  • Will Deleted Items Reappear on My Credit Report?

    On a rare occasion, a negative item might reappear on your credit report. The Fair Credit Reporting Act requires credit bureaus to let you know before a previously deleted listing is re-reported. 

    They also have a window of only 5 days to re-reported a previously deleted item. After this time it is a FCRA violation, which makes it hard for bureaus to re-report items.

  • Which is Better: Sky Blue or Lexington Law?

    Lexington Law and Sky Blue are both great options for helping people to improve their credit score. This will ultimately lead to greater financial access — including access to loans from the leading debt consolidation lenders for example. Do some more research to figure out which is the best option for your personal needs.

    Sky Blue Credit Repair offers a lower monthly price, and excellent service. It also offers a couples discount. Lexington Law has also recently experienced some legal drama, whereas Sky Blue has not.

    The Sky Blue customer service team is also the best in the industry. Customers consistently rave about the professional and knowledgeable team. If you’re looking for the best value offered in the credit repair space, we recommend Sky Blue.

  • How Can I Raise My Credit Score in 30 Days?

    You can seriously ramp up your credit score in 30 days by doing the following

    1. Get your credit report.
    2. Go through your report line by line and identify any incorrect information
    3. Dispute this with the leading credit bureaus.
    4. Pay your credit card balances or consolidate your debt through a leading debt consolidation lender.
    5. Contact the collection agencies.
    6. If the collection agency does not remove the account, do not pay it.
    7. Contact the creditors to eliminate late payments.
    8. Dispute the inquiries.
    9. Become an authorized user.
  • Does Sky Blue Remove Charge Offs?

    Sky Blue Credit Repair can remove the charge off if it is the account is past the reporting period.

  • Does Sky Blue Hurt Your Credit?

    The suggestions and disputes recommended by Sky Blue will result in a better credit report and could improve your credit score. Depending on how many items you need assessed, it could take some time. Sky Blue Credit Repair is known to do it within a few weeks to months.

  • Should I Dispute a Charge Off?

    If there are any inaccuracies about the reporting, you could dispute it with your creditor or ask the bureaus to investigate. Paying a balance will help your credit improve in the long.

All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.

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