What Identity Theft Victims Should Know About Credit Repair Companies
Identity (ID) theft has harmful, lasting consequences. Fraudulent debt could stay on your records even after clearing them, tanking your credit score. It might take years to normalize your rating.
If you end up in a similar situation, will hiring credit fixers speed up restoration? Only if you choose the right professionals. Here’s what ID theft victims should know about credit repair companies and finding reputable options.
What Are Credit Repair Companies?
As the name suggests, credit repair companies help fix bad credit scores. They communicate with credit bureaus on behalf of clients. If you opt for their services, their team will monitor your outstanding loans, dispute inconsistencies,freeze your credit, and erase fraudulent transactions.
You’ll find dozens of credit fixers online, but only a few effectively restore damaged credit. Some shady companies even trick clients with false promises.
To ensure you hire reliable and trustworthy professionals, assess your options based on the following factors.
Credit Report Dispute Limitations
All three major U.S. credit bureaus, i.e.,Experian,TransUnion, andEquifax, accept multiple credit report disputes. You can file as many as you need for free. So never settle for misleading companies that limit clients to just one or two a year.
With that said, you shouldn’t demand unlimited disputes either. A lot of work goes into monitoring reports. Credit fixers will quickly burn through their resources if every client gets hundreds of disputes regularly. It’s pretty unlikely anyway.
Verified Reviews From Third Parties
Gain insights into your prospective credit fixers by reading user reviews. Don’t blindly trust finance blogs. Most of them are affiliate marketers solely focused on referral fees.
Instead, visitindependent complaint siteslikeTrustpilotandBetter Business Bureau(BBB) for legit, first-hand reviews. See what real people experience after signing up.
You don’t have to ignore all credit repair companies with negative feedback. Complaints are expected in business. But if a brand has low ratings across platforms and rarely responds to comments, move on to other options.
Monthly and Annual Subscription Fees
There’s nothing wrong with paying extra for premium credit repair services. But you should know what you’re getting. Shady companies overcharge unsuspecting users with zero knowledge of the credit system.
Avoid credit repair packages comprising standard actions, like freezing credit reports, monitoring reports, and filing disputes. you may do them yourself for free. Ideally, opt for credit fixers that offer monthly credit reports, daily discrepancy monitoring, and multiple disputes.
Account Cancelation Guidelines
Think twice before opting for annual plans. Although they cost less monthly, chances are you won’t need third-party credit repair after your score improves. Many debtors spike their credit scores in just six months.
Instead, consider gettingID protection monitoring serviceswho can scan various online and offline documents to reduce your exposure to fraud. Alternatively, credit repair companies only monitor financial records like loan accounts and credit reports.
Initial Subscription Refund Policies
Beware of fixers trapping clients into long-term plans. Regardless of their terms and conditions, they can’t ignore refund requests altogether.
You’re entitled to your money. TheCredit Repair Organizations Act(CROA) states that credit repair service providers must refund clients who leave within three days of account creation.
Should credit fixers give you a hard time,report them to the Federal Trade Commission(FTC).
What Are the Best Credit Repair Companies for ID Theft Victims?
Check out these reputable, widely known credit repair companies before exploring niche options. They’re more likely to deliver positive results. Note that all pricing is correct at the time of writing.
Sky Blue offers straightforward credit repair services. Apart from disputing errors in your credit report, it assists with cease and desist letters, goodwill intentions, and ID theft reports. ID theft victims can use them to clear fraud accounts. Take legal action against anyone who persistently holds you accountable for fraudulent debts.
Monthly plans cost $79 and $119 for individuals and couples, respectively. As for money-back guarantees, unsatisfied clients can request refunds within 90 days of account creation.
Lexington Law
Lexington Law is a reputable credit repair company available in 49 states, excluding Oregon. You’ve probably heard of it before. It boasts more than 77 million removals since 2004, after all.
Monthly fees range from $59.59 to $139.95. While the plans are pricey, note that they come with ID theft insurance and debt management planning. Also, the full-suite package allows six disputes a month.
CreditRepair.com
Unlike other credit fixers, CreditRepair.com claims specific results. The company supposedly helps any debtor with a credit score under 650 get a 40-point increase within six months. Just manage your expectations because it doesn’t offer money-back guarantees.
CreditRepair.com has three packages. The Direct plan costs $69.95 a month and has a first-work fee of $69.95, while the full-suite package costs $119.95 and has a first-work fee of $119.95. You’ll only have to pay the first-work fee once. Afterward, you’re free to sign up for monthly services as needed.
Credit Saint
Credit Saint is an excellent option for first-timers. Its full-suite package offers unlimited disputes, comprehensive credit consultations, and thorough score tracking. it’s possible to seek guidance every step of the way.
To further reassure clients, Credit Saint has an impressive money-back guarantee. You’ll automatically qualify for a full refund if it can’t remove at least one error within 90 days.
Just note that the packages are costly. The cheapest plan costs $79.99 a month and has a $99 initial working fee, while the full-suite option costs $119.99 a month and has a $195 initial working fee.
The Credit People
The Credit People boasts aggressive, affordable credit restoration. It promises a credit score increase of from 50 to 100 points through monthly updates, score analyses, and unlimited disputes.
Apart from credit monitoring, you could get debt management. Refinancing overdue or third-party loans with steep interest rates positively impacts credit.
The Credit People only offers two plans. You can either pay $79 monthly and a one-time $19 set-up fee or shell out $419 for six months of continuous restoration.
Should ID Theft Victims Hire Credit Repair Companies?
Whether or not you need credit fixers depends on your situation. Only consider hiring them if you wholly understand credit repair services and report disputes. Newbies should contact credit bureaus first. You’ll end up wasting money if you set unreasonable expectations—credit repair companies won’t magically spike your creditworthiness.
Apart from disputing inaccurate and fraudulent information, bolster your data privacy system. Never let crooks bypass your security again. Small, sustainable security practices like monitoring credit reports, avoiding shady websites, and setting fraud alerts go a long way in preventing ID theft.
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