About Credit Repair
Credit Repair claims to offer a proven online system that can help you improve your score by verifying that the information contained in your credit report is accurate. Because of this, Credit Repair claims to help “you develop a healthier relationship with your credit” and to be the “fastest, most effective approach to credit repair.”
In fact, according to the CreditRepair.com website, the company claims to be so effective that previous members’ TransUnion credit scores increased an average of 40 points over the course of 4 months of membership, along with an average removal of 11.6 negative items, averaging 7%. Granted, Credit Repair is the first to admit that how long it will take to repair your credit depends on your specific circumstances.
So, is signing up for Credit Repair a good use of your money? We’ll answer all your important questions in a moment, but first, let’s take a look at how Credit Repair’s process works.
How Does Credit Repair Work?
According to the CreditRepair.com website, the company actively works to verify that all information reported about you to credit bureaus is fair, accurate, relevant, and substantiated, which occurs over 3 steps:
- Pull credit reports and identify items that need to be changed or challenged. It’s at this point that a personalized game plan will be created in order to meet your specific needs.
- Credit Repair uses their “industry leading technology” to engage with creditors and credit bureaus to make sure these changes are reflected accurately.
- Finally, you’ll be given the tools you need to monitor your progress and keep track of your score, including a personal online dashboard, score tracker and analysis, text and email alerts, and mobile apps (iDevice and Android apps).
Will Credit Repair’s Services Actually Work?
As with most things in life, the answer to this question is: it depends, specifically based on your definition of “work.”
In other words, legitimate credit repair companies like CreditRepair.com don’t claim to help you erase bad debt (such as chargeoffs or bankruptcies), to help you take on a new credit identity, or to negotiate with your creditors (known as debt settlement) to reduce your overall debt load, which can have a significantly negative impact on your score.
Instead, they simply review your credit reports for inaccurate (e.g. debt incorrectly assigned to you, when it was actually a family member) or unverifiable information (e.g. debt/chargeoffs for companies that are no longer in business), and then help get this information removed. As a result, your credit score can be increased.
According to the CreditRepair.com website, they accomplish this using “industry leading technology,” although there’s no clarification as to precisely what this is referencing. However, based on many online customer reviews for Credit Repair (more about this in a moment), it appears they might simply send repeated form letters to your creditors.
What Kind of Results Can You Expect with Credit Repair?
As stated in the CreditRepair.com FAQ:
A 2013 study using previous CreditRepair.com clients saw that the average result was 11.6 removals across their three reports. A study of score improvement shows that past CreditRepair.com members have seen an average TU [TransUnion] credit score improvement of 70 points after one year. However, some members did not see those results and CreditRepair.com makes no guarantee that you will receive those average results.
With this in mind, just how well Credit Repair’s process will work depends primarily on two factors: 1) The amount of inaccurate information found in your credit report, and 2) the severity of this information.
For example, let’s say you have a $10K charge-off listed in your credit report from 5 years ago. After Credit Repair does some digging, they find out the company who reported this charge-off is now bankrupt and cannot verify the debt. In an instance like this (although it’s purposely oversimplified), the debt would need to be removed from your report, which would almost certainly increase your score a great deal.
On the other hand, if the information in your credit report is found to be mostly accurate, and/or the incorrect information has less of an impact on your score, then having it removed will increase your score much less than the previous example.
Can You Repair Your Own Credit?
Yes. According to the Federal Trade Commission, you can inform credit reporting companies about any inaccuracies in your reports and have them removed.
Certainly, this will be more labor intensive than using a service such as Credit Repair, although you’ll likely be able to save a good chunk of change in the process.
For more information, be sure to read through our article titled How Not Checking Your Credit Report Could Cost You Thousands.
Are Customers Pleased with Credit Repair’s Services?
With such a generic company name, we only found one website featuring reviews for CreditRepair.com at the time of our research.
On TrustPilot, Credit Repair had 54 customer reviews with an average rating of 7.1 stars. There, some of the most common compliments appeared to cite that the company was effective at removing small collections and some inquiries, and that they improved customers’ credit scores (some claimed that their score increased more than 100 points).
On the other hand, some of the most common complaints appeared to reference that updates can take a long time to be reflected in reports, high price, failure to provide any results (or minimal results after months of paying for the service), and long hold times to speak with customer service.
From a company perspective, CreditRepair.com, Inc. is based out of Salt Lake City, UT. They were accredited with the Better Business Bureau, but didn’t have a rating or any closed customer reviews listed at the time of our research.
Creditrepair.com Pricing & Refund Policy
Credit Repair’s services are priced at $89.95 per month, plus tax, as well as a one-time $12.99 credit report processing fee. Keep in mind that you can also receive a $50 discount if you refer a friend or family member.
For this price, you’ll receive access to a personal online dashboard, a dedicated CreditReport.com advisor, a monthly online credit score analysis, identity theft insurance, updated monthly credit reports, and an updated credit score every 90 days.
In order to speak with a Credit Repair representative, you can contact customer service at 855-255-0263.
Are Credit Repair’s Services Worth the Money?
Chopping to the point: If you’re especially busy or simply don’t know where to begin, legitimate companies such as Credit Repair can help improve your credit score by correcting inaccuracies in your report. However, if you have just a little time and can quickly learn the process, much of this can be completed on your own, for free.
Because of this, we might recommend first searching for “how to dispute credit report errors” through your favorite search engine, and learning just how simple and straightforward the process can be. This way, you can make absolutely sure that Credit Repair’s services will be worth about $90 of your hard-earned money each month.
1 out 2 people found this review helpful
You've been warned
Don't pay them anything because it's a scam. My credit from them was fair, and I checked again, and it's now poor. Forget them; I'm canceling today.
I would not recommend them to anybody, period. They are full of crap, for one, and a waste of time. Goodbye creditrepair.com.
Bottom Line: No, I would not recommend this to a friend
4 out 5 people found this review helpful
I've been paying $100 a month, and nothing had changed. They have many bad reviews. Don't pay them a dime!
Bottom Line: No, I would not recommend this to a friend
3 out 5 people found this review helpful
Items removed from my credit
Within two months, Credit Repair removed ten items from my credit, Great work!
Bottom Line: Yes, I would recommend this to a friend