How Much Does Credit Repair Cost?

Credit repair is possible, but it comes at a price.

Your credit history has about a seven to ten year life span, and if your credit history isn’t great, it could significantly affect your future. Luckily though, there are ways to help your credit score. You can either do the work yourself, or hire an outside company to help you along the way.

The only problem with hiring someone else to do it is that it can end up costing you more than you wanted to spend. These companies make money by either charging their client a monthly fee, or charging you for every time they’ve been able to remove negative information from your credit report.

Should You Pay For A Credit Repair Company?

This all depends on your current situation. If you would rather have someone else handle it and you don’t mind shelling out for the fees, it may be in your best interest to hire a third party. But often times people are able to resolve their credit report issues for themselves. If you do decide to hire someone however, keep in mind that they aren’t able to guarantee that they can help you.

Many people find that handling their credit problems themselves is the better option. All it takes is a bit of time. You can simply contact the lenders yourself or mail them a letter to explain your situation. If there’s an error in your credit report, they’ll be able to fix it once you’ve brought it to their attention.

Doing it yourself will not only cost you nothing at all, but you’ll be safe from scammers who may try to steal your information and only make your situation that much worse.

How Can I Fix Bad Credit On My Own?

Taking the DIY approach is easily done, all you have to do is follow a few simple steps.

1. Get your credit report. You can do this via Experian, TransUnion, and Equifax. You can also check your credit score on a variety of free websites so you can see where you stand.
2. Look for mistakes. This can be tricky, but if you’re paying enough attention or you know for a fact that something doesn’t belong on your credit report, make a note of it and try to dispute them.
3. Be smart with your finances. You don’t want to make your credit worse by spending money you don’t have. Be careful with your credit cards and make sure you’re not maxing them out.
4. Pay your bills. This is probably one of the most important things you can do. Keep track of your finances and set reminders for when certain bills need to be paid.
5. Refrain from applying for even more credit. Many people find themselves resorting to this, especially if they need money fast. But this will only continue to pile on the already existing debt you may be trying to erase.

You don’t have to pay someone to help you fix your credit, but if you decide to, keep in mind the costs and make sure it’s something you’ll be able to afford.