In this article we presented the 10 best credit repair companies. You can skip our detailed discussion on the finance industry and go directly to the 5 Best Credit Repair Companies.
If your credit report is marred by irregularities such as late payments, debt collections, and bankruptcies, it may become impossible for you to buy a car, home, or lend any type of loan. Major lenders in the US, including Bank of America Corporation (NYSE: BAC), Ally Financial Inc. (NYSE: ALLY), JPMorgan Chase & Co. (NYSE: JPM), or loanDepot, Inc. (NYSE: LDI) will not lend you if your credit score is below 600, thanks to the increasing financial regulation and tight checks after the 2008 financial crisis.
In case you hire a mortgage broker to secure a loan, you will have to pay extra money in the form of higher interest rates. According to the loan savings calculator of myFICO, the consumer division of data analytics company Fair Isaac Corporation (NYSE: FICO), your mortgage interest rate may vary by 1.5% depending on your credit score.
A credit repair company can prove handy to relieve you of this predicament by disputing the negative items and improving your credit score.
According to the consumer complaints database of the Consumer Financial Protection Bureau (CFPB), 282,069 complaints were filed by Americans in the category of ‘credit reporting, credit repair services or other personal consumer reports’ in 2020.
Such a huge number of complaints tell us that credit reports are often replete with mistakes. This makes it imperative for individuals and businesses to consider using services of reliable credit repair companies that might plead their case effectively against inaccurate items on their credit report.
When it comes to choosing a reliable credit repair company, there are hundreds of options and it becomes difficult to differentiate between genuine companies and scammers.
According to the data from the complaints database of CFPB, out of the 486 complaints registered in the category of ‘credit repair services’ 179 were about fraud and scams. Therefore, knowing about the best companies and their unique credit repair strategies not only helps you choose the best service provider in the market but also saves you from falling into the trap of scammers.
According to IBISWorld, the California-based industry and market research firm, the market size of credit repair services in the US in 2021 is worth $3.4 billion. Similarly, MarketWatch, a subsidiary of Dow Jones & Company, reported that worldwide Credit Repair Services market revenue was $13.925 billion in 2019, and with a CAGR of 2.21% during 2020-2025, it is expected to grow to $15.877 billion in 2025.
Data from the 2020 annual survey of the National Foundation for Credit Counseling (NFCC) shows that 62% of adult Americans had credit card debt in 2020 and about 46% of them attempted to find a lower interest rate. According to the survey 7 out of 10 Americans who bore debt find it difficult to minimize it due to financial emergencies.
Moreover, financial stress induced by the COVID-19 pandemic is also increasing the demand for credit repair services. Therefore, the market size of credit repair services is likely to see growth in the next couple of years.
We have reviewed dozens of companies to make this list of top 10 credit repair companies for you.
Let’s start our list of the 10 best credit repair companies.
Best Credit Repair Companies
CreditFirm.net lies at the bottom of our list of best credit repair companies. It is a credit repair law firm based in Deerfield, Illinois. The organization has been in business since 1997. Being a law firm, they are better placed to deal with the legalities of the credit repair process.
They claim to have helped improve the credit scores of over 60000 consumers in all 50 states of the United States. Moreover, according to their website, they have a high level of customer satisfaction as 9 out of 10 customers, who avail of their services, recommend them to friends and family.
They do not charge any upfront fee and their monthly fee is only $49. Moreover, as they do not offer different packages, and charge a flat $49 fee for all the services they provide.
They help their clients remove Bankruptcy, Judgments, Tax Liens, Collections, Charge-off, Late Payments, Repossessions, and Foreclosures from their credit reports. Furthermore, they offer free consultation and you can cancel their services at any time.
The downside of their business is that they are not accredited by Better Business Bureau (BBB), a non-profit business rating organization, and their BBB rating is C+ (on a scale of A+ to F).
9. Pyramid Credit Repair
Pyramid Credit Repair is based in Wilmington, Delaware. The company entered into business as a self-help software-based credit repair company in 2011. Later on, as their membership grew, they started providing complete credit repair solutions.
They offer a free assessment of your credit situation, assign a dedicated credit expert, and provide a personal online dashboard where you can see results and all the steps being taken to improve your credit score.
Pyramid credit offers separate credit repair plans for singles and couples. They are considered best for couples as they have a dedicated plan for them which includes some specialized financial tools.
In addition to these plans, they also offer a 24/7 identity protection plan. The identity theft plan monitors your scores from the three major credit bureaus and reports unusual changes. It includes $25,000 identity theft insurance and has a monthly fee of $29.99.
Pyramid Credit provides the option to postpone, pause or cancel the service anytime. Additionally, they provide special discounts to veterans, active duty servicemen, and teachers. They also offer a 100% money-back guarantee, if they fail to deliver results within 90 days.
8. Credit Repair.com
CreditRepair.com is based in Salt Lake City, Utah. The company is offering credit repair services since 2012. They offer a broad range of services ideal for all types of credit repair needs.
CreditRepair.com offers a free online credit evaluation which includes your credit score, a summary of the negative items on your report, and suggestions for how to address them. CreditRepair.com provides an excellent mobile app where clients can track their progress and get alerts.
They offer three different plans, including Direct, Standard, and Advanced plan. Each plan provides a different level of services. Direct plan provides basic services and is best suited to clients who have a handful of negative items on their report. This plan includes 15 negative item challenges and three creditor disputes to all three credit bureaus each month along with credit monitoring.
Advanced Plan, being the most comprehensive plan of CredirRepair.com, provides identity theft protection and insurance, a host of financial tools, monthly FICO credit scores along with eight creditor interventions to all three credit bureaus.
What damages their reputation to fall at 8th spot in our list is a D rating from Better Business Bureau, and 15 complaints filed against them to Consumer Financial Financial Protection Bureau during the last four years.
7. AMB Credit Consultants
AMB Credit Consultants is a Dallas, Texas-based credit repair firm. The organization was founded in 2007. AMB Credit is relatively new in the credit repair business, but it has earned a good reputation by delivering favorable results to its clients.
They have a good level of customer satisfaction as there are no complaints filed against AMB to the Consumer Financial Protection Bureau (CFPB). AMB consultants are not Better Business Bureau accredited and has a BBB rating of C.
They are considered a relatively expensive company as they charge $149 as enrollment fee along with a monthly fee of $99. But, they offer an unlimited number of disputes in a single billing period. They also offer an online portal, where customers can track the status of their credit repair case.
They offer discounts to couples on enrollment fee if they sign up together. Unlike many credit repair companies, they do not offer free consultation and also charge an additional $24.99 per month for credit monitoring.
6. Lexington Law
Founded in 1991, Lexington law is one of the most experienced credit repair companies in the USA. Currently, Lexington Law is the biggest credit repair company in the United States in terms of number of clients.
They offer a free online consultation to their new clients. Unlike many of its competitors, Lexington Law does not charge an upfront fee. They offer three different packages to clients.
Their entry-level package is Concord Standard. It covers all the essentials of credit repair with a monthly fee of $89.95. In fact, this package includes all the services offered by many small companies.
The most expensive and thorough package provided by Lexington law is Premium Plus with a per month fee of $129.95. The most important features in this package are the Fair Isaac Corporation (NYSE: FICO) score tracker, identity theft protection, and a bundle of personal finance tools.
However, there have been several complaints filed against the company with CFPB over the past decade. Moreover, their Better Business Bureau (BBB) ranking is C and the company is not accredited by BBB.
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Disclosure: None. 10 Best Credit Repair Companies is originally published on Insider Monkey.