Frequently Asked Questions (FAQ):

Do credit repair companies really work?

The answer is it depends.  Most reputable Credit Repair Companies do really work.  Credit Repair companies help you remove negative items from your credit report to improve your Credit Score. A higher FICO Score can make you look more creditworthy to qualify for better home mortgage and auto loans.  However, the types of items Credit Repair Companies typically can remove are items that are eitherinaccurate, unverifiable, or outdated.  Credit Repair Companies can also help you negotiate settlements with Creditors, including a Pay for Delete to remove a negative account from your credit report.

How do credit repair companies work?

Most Credit Repair Companies start by reviewing your credit reports.  The major credit reporting bureaus for personal credit are Experian , TransUnion, and Equifax .  Credit Repair Companies will generally walk through each negative and inaccurate item in your credit reports to determine the best strategy for repair.

  They communicate with your creditors and credit bureaus on your behalf to help resolve the negative issues.  They dispute incorrect, unverifiable and outdated items on your behalf.  They help stop harassing phone calls from debt collectors.  And they help you negotiate settlements if needed. Your Credit Score improves as negative items are removed from your credit report.  Good Credit Reporting Companies sometimes also have education resources on how credit scores work, and tips on how to improve your credit score beyond removing negative items. 

What is considered a poor credit score?

Most creditors consider a Credit Scores below 580 or 579 as poor or subprime credit.  Anything below a 550 Credit Score is generally viewed as bad credit.  Some systems have considered scores as high as 649 or 669 as poor credit.  FICO Credit Scores from the three main credit reporting bureaus generally range from 300 to 850 points. People with a poor credit score with subprime credit may have more difficulty qualifying for loans or better loan and mortgage rates.  A 500 credit score as of 2018 is the minimum required for an FHA loan, but 580 and higher to qualify for the FHA 3.5% down-payment option.  This 580 creditscore cut-off may influence the guidance of a 579 credit score or below being viewed as a poor credit score.

How much does it cost to repair my credit?

A lower credit score can be costly in high interest rates, bad loan terms, and inability to qualify.  Credit Repair Companies have a wide array of models, from pay per item to subscription models.  For the best results in the fastest time, credit repair services may be costly, though most find working with a reputable credit repair service worth the extra expense to qualify for better loans and terms.  When the right loans for your new home mortgage or auto loan are funded, you pay less throughout the life of the loan.

Disclaimer: Individual results may vary. There is no guarantee for specific results.

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