Can You Pay to Have Your Credit Fixed?

Can you pay to have your credit Fixed? The quick answer: Yes you can pay someone such as a credit repair company to fix your credit. But, before you hand over your hard-earned money, remember this: You don’t need to pay anyone to fix your credit. You can do all the work credit repair companies do for free and you have access to all information and resources they have.

Having good credit and a good credit score is very important in the current financial world. Your loan and mortgage approval rates and how much interest you pay are directly affected by your credit score and the quality of your credit.

So, having your credit repaired is utterly important. If you have not started working on your credit, get started as soon as possible. Simply because you never know when a financial setback will knock on your door.

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Can You Pay to Have Your Credit Fixed?

What does fixing your credit means? When it comes to fixing your credit, we are either talking about inaccuracies and errors, or negative items that have been mistakenly reported on your credit report. For example, if you have a hard inquiry that has been on your account for more than 24 months, this inquiry would be there by mistake.

This is because a hard inquiry is supposed to fall off your credit report after 24 months. If the same inquiry stayed on your report after this period, you can dispute it and have it removed.

Some people consider fixing their credits as rebuilding their credits. Rebuilding a credit goes beyond fixing your credit. For example, if you have bad credit, fixing errors and removing negative items won’t be enough to rebuild your credit.

The function of credit repair services companies is mainly to clean up your credit report by making sure that:

Errors are fixed
Negative items on your credit report are removed(those that can be removed)
Fraudulent activities are taken care of
Make sure that all information on your credit is updated
Give me advice on how you can proceed moving forward without wrecking your credit

If you don’t want to go through the hustle of fixing your own credit, you can pay to have your Credit Fixed. As long as the company you use is legit and certified/accredited for the job, you will be fine. I emphasize certification/accreditation because the Credit Repair Organizations Act (CROA), which is part of the consumer protection legislation regulates the behavior and activities of credit repair companies. Having a certification shows that the company is legit and will be held accountable for any wrongdoing with your credit.

Credit repair companies do not have special access to credit bureaus

It is true that credit repair services specialize in repairing credits. That is what they do. However, they do not have special access to credit bureaus (Equifax, TransUnion, and Experian). This means that the process they go through is the same you would follow if you were fixing your own credit.

In addition, credit reporting bureaus do not give more attention to disputes based on where they came from. Whether the dispute came directly from your credit reporting company or you, the credit reporting bureau will treat it the same.

What you do to get your credit repaired is your choice. Keep in mind that you could achieve the same results if you choose to fix your own credit.

One thing to remember is that it is easier and much fast to pay someone to fix your credit. This is because credit repair services specialize in this area, and therefore, know what to do at any given moment regardless of the type of errors or negative items. These companies also have templates of letters and how to prep everything and present it professionally.

Pros and cons of paying someone to fix your credit

Bad credit and below-average credit score will hinder your ability to qualify for loans. If you get qualified, you will pay a higher interest rate which is something you don’t want to do.

Credit repair companies can repair your credit and help you rebuild your credit score. However, this sweet deal comes at a cost.

The following are the pros and cons of paying someone to repair your credit.

Credit repair companies charge for their services: If they don’t charge a fee, they would not stay in business. You should expect to pay fees to get your credit fixed. Most companies charge a monthly subscription and/or a flat fee for every item deleted or fixed on your credit report.

They show you what is messing up your credit: Since credit repair companies specialize in repairing credits, they can quickly spot something wrong with your credit. They have expertise and resources at their disposal. If you were trying to fix your credit by yourself, you might spend countless hours trying to figure out what is really wrong with your credit.

It is faster and easier to use a repair company: Credit repair companies have every resource possible and know what to do in every case. So, you get to have your credit repaired much faster.

You pay for a service that you can do yourself: You can do everything credit repair companies do for free. If you were going to get some items deleted or corrected from your credit report, for example, you would need to file a dispute with the credit repair bureau(s) that made your report. You can also file a dispute against your creditors or do both. Guess what? Credit repair companies do the same thing.

It takes time to fix your credit: Whether you are paying someone or doing it yourself, you cannot get your credit fixed just like that. If you have been missing payments or are in collections, these items can stay on your report for quite some time.

You might end up with higher fees: Some companies charge a fee for every item fixed on your report. So, if you have a lot of things on your report, you could end up with a lot of charges. You could also pay a lot of money if you do not shop around for cheaper services.

You might end up with a scamming company: Just like any sector out there, some businesses are legit. Others are scams. So, make sure that you use a certified and/or accredited credit repair company. In addition, legitimate companies are usually members of the Financial Counseling Association of America or the National Foundation for Credit Counseling. Choose carefully.

How much does it cost to have my credit fixed?

The fees and rates you pay to have your credit fixed vary from one company to another. According to Lexington Law, The Credit Repair Organizations Act(CROA) regulates this industry to make sure that companies do not:

Charge you upfront fees for the service they have not conducted yet
Charge you more than the service they conducted
Require you to waive your rights
Change your identity or ask you to change it
Make false statements about your information, and
Misrepresent or exaggerate their services

With all these regulations in place, you should expect to pay an acceptable rate for the service the agency performed to fix your credit.

Most repair companies charge anywhere between $19 to $149. Some companies charge even higher than this rate depending on the extension of their services. For example, a company that is cleaning up your credit report and giving you guidance from a 500 credit score until you reach a 760 credit score will charge you more than the one that is just deleting inaccuracies from your report.

If you think this amount is a bit higher, consider doing it yourself instead of paying someone to have your credit fixed. There is nothing they do that you cannot do yourself.

I have put together a guide on how to dispute errors or inaccuracies in your credit report. Make sure that you use this guide to get started.

How to repair your own credit?

Since you don’t need to pay anyone to have your credit fixed, how can you do it yourself? Whether you are paying some or doing it yourself, repairing your credit is not a quick fix. There is a number of things you can do that eventually lead to an improved credit and credit score.

It is safe to say that if you have bad credit, you also have a bad credit score. And you can’t increase your credit score in a day. So, bare with me as I go through the steps you need to take to repair your own credit and improve your credit score.

It is a process, not a marathon

So, how to repair your own credit?

The following are the steps you need to take to repair your own credit.

Get a copy of your credit report: You can’t fix something unless you know what it is. So, your credit report will show you exactly what you are doing right or wrong with your finances. By law, you can have a free copy of your credit report from each credit reporting bureau (Equifax, TransUnion, and Experian) once a year. To get a free copy of your report, visit AnnualCreditReport.com or call 1-877-322-8228.

Read your credit report line-by-line: This is probably one of the most important steps. You must read and understand everything reported in your credit report. By doing so, you will be able to catch any misinformation, inaccuracies, or errors in your report.

Dispute every error, fraud, and inaccuracy from your report: Anything that is not right in your credit report should be disputed. I have put together a complete process on how to dispute errors in your credit report. Check out the process here.

Submit a Good Will Letter to your creditors: There are things that cannot just be deleted from your report. For example, a missed payment will stay on your credit report for about 7 years. But, if you are a loyal customer and you have been with the company for a while with a good record, you may politely ask the company to delete the late payment from your record in exchange for full payment. The company is not obligated to do so. However, there is a high chance that the company might delete it from your report. It does not hurt to try.

Pay off your collections: Finally, the part you don’t want to hear. Nobody said it was going to be easy. If you have accounts in collections pay them off as soon as possible. An cannot that cannot be deleted or forgiven, must be paid off. Some credit bureaus apply less weight to paid-off collections compared to active ones.

Continue cleaning up our credit report one item at a time: Make sure that your credit report is as clean as it can get. After cleaning up your credit report, you should see a big improvement in your credit score.

At this point, what you have done so far is to clean your credit report

Now, it is time to move to the next phase of fixing your own credit.

While fixing your own credit, you need to avoid any activity that will be considered a red flag on your credit.

Can you pay to have your credit Fixed?

Follow the next steps as you build your credit and increase your credit score.

Do not miss or have a late payment: Never miss or have a late payment ever(regardless of whether you are trying to fix your credit or not). Make sure that you make all your payments in full or at least the minimum payment before the due date. Your payment history affects your credit score by 35%. Having a late payment or missing one automatically puts you deeper into the hole.

Reduce your credit utilization to under 10%: Your credit utilization is the amount you have spent compared to available credit. For example, if you have a $1000 credit limit and you spent $500, your credit usage will be 50%. A higher utilization shows that you are relying on debt to cover your expenses which makes you a risky borrower. Credit utilization affects your credit score by 30%. So, if you want to fix your credit, make sure that your credit utilization is under 10%. Many lenders suggest that you keep it under 30%. However, 30% utilization is still too high for someone who is trying to fix your credit. A lower utilization makes it easy to pay them off every month and prevents you from carrying over the balance to the next billing cycle.

Do not apply for more credit: When you apply for new credit (credit card, car loan, personal loan, mortgage, etc); the lender requests to see your credit profile. The purpose of this activity is to determine how risky it is to lend you money. This results in a hard inquiry. Hard inquiries affect your credit score and stay on your credit for 2 years. Your credit score will also go down 5 to 6 points from each hard inquiry. On top of that, getting new credit will reduce your credit age which affects your credit score by 15%.

Apply for a credit limit increase: If you are finding it difficult to lower your credit utilization, apply for a credit limit increase. Most lenders increase your credit limit. But you can request a line of credit increase. A higher limit will automatically reduce your credit utilization. Keep in mind that this increase could come with a hard inquiry which will knock off 6 points from your credit score. You can also get a new credit card with a higher limit to lower your credit utilization. This way, you are giving up a few points from your credit score for lower credit utilization.

If you follow the steps I mentioned in this post, you should see a significant increase in your credit score. On top of this, your credit should look much better than it was when you started the process.

Final words

Can you pay to have your credit Fixed? Yes, you can pay someone to fix your credit but you don’t have to. You can build your own credit for free.

Always remember that repairing your credit is not a simple process or a one-step process. It is a combination of multiple actions that lead to a single goal: Better credit and a higher credit score.

Quick results are possible but that is not what you are looking for.

Start by understanding what is wrecking your credit. You will know this information from your credit report. Clean up your credit report by disputing any errors and inaccurate information from your report. Then, watch how you use the credit you have already.

Continue this process until you have fixed your credit and your credit score is as good as you want it. Always remember that you don’t have to pay someone to fix your credit. You can do it yourself for free and you have every resource at your disposal.