Credit Reporting

What Are Typical Credit Repair Upfront Fees?

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What Are Typical Credit Repair Upfront Fees?

Credit repair companies may not always be worth the money.

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If you’ve been having some issues with your credit report, sometimes a credit repair company may be your best option. These companies are able to comb through your credit report for any errors and fix them over time. The only problem is, credit repair companies can be costly.

So how much exactly can you expect to shell out once you’ve hired a credit repair company? It all depends on who you hire.  Some companies start charging at around $70 per month, while others can be much pricier, charging anywhere from $80 to $120 per month.

What Exactly Are You Paying For?

Credit repair companies are offering you a service, and with all services comes a fee. Hiring a credit repair company means you’re leaving them in charge of handling all the paperwork and even legal matters. Not only that, but many credit repair companies also offer counseling to help you get your finances back on track.

Like with most things, there are also many cons to hiring a credit repair company.

  1. While most cases take about a month or two to resolve, a more complicated one could take longer. In this case, you’ll have to foot the monthly fees which can add up significantly.
  2. Credit repair companies don’t guarantee that they’ll be able to help. While oftentimes it can be worth the money, you won’t be getting your payments back if they can’t help.
  3. Some companies may be trying to scam you. Because you’re giving up so much confidential information, it can be easy for someone to steal your identity or milk you high and dry of your money.

Are Credit Repair Companies Worth The Money?

Do not be fooled into thinking that you absolutely need to hire a credit repair company to solve your credit report issues. A lot of times, people are able to do it themselves. But if you’re someone with a busy schedule or who is dealing with a more complicated situation, it may be worth it to hire the professionals.

At the end of the day, it’s really up to you whether or not you want to splurge to hire a credit repair company. You should also take into consideration that these companies aren’t hired to magically fix your credit. Their job is to take a look at your credit report and look for errors. If there are any, they can fix them.

Credit Repair Companies Won’t Fix All Of Your Problems

I your credit is bad because you’ve defaulted on payments or you’ve put your credit on the line for someone else, credit repair companies can’t help you. In this case, you would have to solve the issue on your own. If you were already planning on setting money aside to pay for a credit repair company, why not use it instead to pay off your bills and get back on track?

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