If you are struggling with bad credit, have you looked into credit repair companies in Canada? Having bad credit can cause a lot of stress in your life, especially when it comes to finances. It will be difficult for you to get approval for a credit card, mortgage, loan, or even to rent an apartment. There are many ways to improve your credit score, but if your situation is serious or very urgent, a quicker solution may be to use the services of a credit repair company.
What is a credit repair company and what does it do?
Typically, establishing a credit score takes a lot of work and can take a long time, depending on how bad the situation is. It requires research, working with different companies and tools, and understanding what has the greatest impact on your score.
You can think of a credit repair company as a counselor/manager responsible for your credit score. They will pull your credit file from all the major credit bureaus and then analyze what needs to be fixed, what needs to be prioritized, what items need to be disputed and what further actions you can take to improve your score. They will conduct all negotiations with creditors to remove inaccurate items from your reports.
Top credit repair companies like Refresh Financial will also recommend actions you can take to improve your score. You’ll get recommendations on tools you can use and accounts you can apply for, helping you speed up the process.
Beware of Scams: How to Choose a Legitimate Credit Repair Company
Unfortunately, the credit repair industry is full of scammers. They will try to take advantage of the fact that people in need of credit repair are usually in an urgent situation. They will try to rush you into selling them products and services that will do nothing to improve their performance.
How to avoid scams
If you are in the process of looking for a credit repair company, do your due diligence by reading reviews and testimonials and avoiding companies that make outlandish promises that sound too good to be true. Credit repair companies can remove many things from your score that are negatively affecting you, but not if they are accurate and you are 100% at fault.
How long does it take for them to repair my credit score?
For most people, you should expect to work with a credit repair company for about 6 months. Credit repair should be viewed as a monthly process. Remember that credit cycles last 30 days. This is not a solution that can be changed in a few days.
The actual duration depends on the status of your current score, your desired score level, and the number of negative items on your account that need to be disputed and/or removed.
How much can my credit score increase by working with a credit repair company?
People who stayed with a credit repair company for at least 6 months saw their score increase by 100 points. Again, this is not guaranteed and depends on many different factors.
How much is it?
Credit repair companies vary in price and each offers different packages. Some companies charge a monthly fee, others charge per item removed. It’s best to stay away from companies that charge per dispute and don’t provide a clear pricing structure. For example, some lower-reputation companies may charge you up to $1,000 for a single removal.
All the best companies charge a monthly fee and offer a certain number of disputes. Prices for a standard credit repair service range from $80 to $100 per month. If you need a more aggressive approach and need faster results, this can go up to $150 per month.
Is it worth it? Who should use a credit repair company?
Yes, these companies are worth it if you need help improving your score. This is most useful for people who have many negative elements affecting their credit score.
Credit repair companies will handle all the investigation, negotiation and disputes for you. Debt collection agencies are famous for being influential and can contact many people if they are not used to negotiating over the phone. Having an experienced professional take care of this for you can help lighten your plate and save you hours each month.
Some credit repair companies may even offer credit counseling or debt management services to help you regain control of your financial situation. It is also worth taking an interest in these services if you are struggling with high debt.
