Generally, credit fixing services help consumers dispute errors on their credit report. These companies also help them develop responsible financial habits and negotiate with creditors or debt collectors.
While these services do have a place, you can often find ways to fix your credit on your own. Beware of scams that promise to remove all negative information from your credit reports.
What They Do
While consumers can dispute credit report errors on their own, credit repair services make the process easier. Companies typically start by requesting copies of your credit reports from each of the three major credit bureaus (Experian, Equifax and TransUnion). They then review each report for inaccurate information and contact the credit bureaus and creditors on your behalf.
The goal is to get the erroneous mark removed or modified. These companies can offer a variety of plans, including Prosperity and Success, which include unlimited disputes and creditor interventions. Some also offer a money-back guarantee. For example, The Credit People gives you 90 days to cancel your subscription and refunds the last month’s payment.
Keep in mind, however, that these credit repair services can’t do anything you can’t do on your own. While they may be able to have accurate information removed from your report, they can’t remove any marks that are accurate and that reflect negatively on you as a borrower.
Ovation Credit Repair
Ovation Credit Repair specializes in helping customers resolve negative entries on their credit report, including late payments, collections, foreclosures, inquiries, charge-offs, judgments and liens. It also helps with debt management and provides tools to help you pay down your balances to improve your credit utilization ratio.
Ovatation offers two service packages: Essential and Essential Plus. Both have a one-time initial fee and a monthly recurring fee that keeps access to the company’s services. A senior discount is available on both plans. The company says it takes between six and eight months on average to see “optimal results.”
In addition to its credit repair services, Ovation Credit Repair offers a variety of financial management tools and an intuitive display that allows you to track the status of your credit reports and other data. Its Dispute Manager tool lets you manage your credit disputes online and in real time. The company also has a straightforward refund policy.
Credit Karma
Kenneth Lin co-founded Credit Karma in 2007 to broaden consumer access to their credit reports and scores. Upon logging in, Credit Karma collects personal information from users like their name and the last four digits of their Social Security number to pull up their credit reports and VantageScore from two of the three major national credit bureaus, Equifax and TransUnion.
They also provide daily credit monitoring from both the credit bureaus and alerts on changes to their credit report. These free services come with no hidden fees and are a useful tool for those looking to improve their financial situation.
Unlike some of the other credit score monitoring services, Credit Karma offers the ability to dispute inaccurate information directly on their credit report through their Direct Dispute service. They are a useful resource for those who need to fix errors on their report before applying for loans or other big purchases. They are now owned by Intuit, the company behind TurboTax.
TransUnion
TransUnion is one of the three main credit bureaus in the United States. Like Equifax and Experian, it provides credit reports and scores for over 235 million Americans and around a billion consumers worldwide.
Founded in 1968, the company specializes in consumer credit reporting. Their credit information is used by banks, lenders and credit card companies to help make decisions about granting loans and credit cards. The company also provides a range of credit monitoring products and services.
These include credit score simulators that show you how your credit score might change based on certain events or actions. You can also receive instant alerts when someone attempts to apply for credit in your name. Plus, they provide up to $1 million in identity theft insurance. You can sign up for these services through their website. They also have a dedicated FAQ page for disputing errors on your credit report. You can also access your TransUnion credit report for free every year by following the links on their website.
