How do I find a legitimate, premium credit repair service?
"Just a word of warning: Most of the companies that promise to repair your credit are scams or close to them.  You could just as easily do yourself what they are going to charge you for. Essentially they write a letter to the credit agencies disputing most or all of the bad stuff on your credit report. When you do that, the credit agency sends an inquiry to the company that reported the negative information requiring them to justify it. If that company doesn't respond within x days, they remove the item from your credit report. These companies depend on the fact that some companies aren't going to hit that deadline or even respond. Perhaps they are just too busy to hassle with providing backup documentation for a $20 late payment. They are banking on getting a few of these cheap ""outs"" to your benefit and charging you for what amounts to sending out a bunch of form letters. If you don't mind writing a bunch of letters, then you can save a lot of money and get the exact same results. These companies want to pretend they have some insider knowledge or fancy lawyers that know special credit-magic, but they generally don't. The only option I'd consider legitimate and not a waste of your time is a referral from the non-profit National Federation for Credit Counseling. They aren't going to ""fix your credit"", but will give you advice on budgeting and repairing your credit on your own." If the bad credit items are accurate, disputing the accuracy of the items seems at best, unethical.   If the bad credit items are inaccurate, the resolution process provided by each of the 3 credit bureaus, while time consuming, seems the way to go.
"Don't use a ""credit repair"" agency. They are scams. One of the myriad of ways in which they work is by setting you up with a bogus loan, which they will dutifully report you as paying on time. They'll pretend to be a used car dealer or some other credit-based merchant. For a time, this will actually work. This is called ""false reporting."" The problem is, the data clearinghouses are not stupid and eventually realize some hole-in-the-wall ""car dealer"" with no cars on the lot (yes, they do physical inspections as part of the credentialing process, just sometimes they're a little slow about it) is reporting trade lines worth millions of dollars per year. It's a major problem in the industry. But eventually that business loses its fraudulent reporting ability, those trade lines get revoked, and your account gets flagged for a fraud investigation. The repair agency has your money, and you still don't have good credit. Bad news if this all goes down while you're trying to close on a house. You're better off trying to settle your debts (usually for 50%) or declaring bankruptcy altogether. The latter isn't so bad if you're in a stable home, because you won't be able to get an apartment for a while, credit cards or a good deal on auto financing.  ED: I just saw what one agency was charging, and can tell you declaring bankruptcy costs only a few hundred dollars more than the repair agency and is 100% guaranteed to get you predictable results as long as you name all your debts up front and aren't getting reamed by student loans. And considering you can't stomach creditors-- well guess what, now you'll have a lawyer to deal with them for you. Anything you accomplish through an agency will eventually be reversed because it's fraudulent. But through bankruptcy, your credit will start improving within two years, the tradeoff being that you won't be able to get a mortgage (at all) or apartment (easily) during that time-- so find a place to hunker down for a few years before you declare." I have never seen any of my mobile phone providers report any data to any credit agency. They tend to only do that if you don't pay on time. Maybe sometimes it helps, but from my experience over the last decade - it must be some very rare times. I visited annualcreditreport.com to get my annual credit report.  It is only the report, not the score or FICO score.  This is the only outlet I know of that allows you to get your report for free, without a bunch of strings attached or crap to sign up for and cancel later. It was very easy.  I was wary of putting in my private information, but how else can they possibly pull you up? Read the instructions carefully.  You go to each bureau to fetch your report, and they dutifully give you a free report, but they push hard to try and sell you a score or a report service.  It is easy to avoid these if you read carefully. Once you get a report,  you have print it out or you can't see it again for another year.  Each bureau has a different site, with different rules, and different identity checks to get in.  Again, read the instructions and it isn't hard. Instead of printing, I just saved the page as HTML.  You get one html file and a folder with all the images and other stuff.  This suits me but you might like to print. After you get each report, you have to click a link to back to the annualcreditreport.com site.  From there you go to the next bureau. Regarding a score.  Everybody does it differently.  Free Issac does FICO, but anybody who pulls your credit can generate a score however they like, so getting a score isn't anywhere near as important as making sure your report is accurate. You can use credit.com to simulate a score from one of the bureaus (I can't easily see which one at the moment).  It is as easy as annualcreditreport.com and I have no issue getting a simulated score and report card. This discussion indicates that the accounts are not reported to credit agencies, but the post is also over a year old, and who knows how reliable the information is (it's fairly well-traveled, though).  It's based on one person calling up Trans Union and E-Trade and asking people directly. Monitoring your credit doesn't do much. There are some vendors that actually have staff to repair your credit/identity. Substantially all of the credit monitoring services do what they say and monitor.  If you have a problem they notify you then point you to the place(s) that you can work with to repair the issue.  This is not terribly valuable, definitely not worth having multiples, but the repair aspect of some IS very valuable.   You sign a limited power of attorney and set loose someone else to fix the problem. so what do you think of this article? we hope you can take the time to post your comments and reactions below. that way, we can help all those who are planning to sign up for credit repair services or are interested to take matters into their own hands in terms of paying off their credit obligations, once and for all. "Your post has some assumptions that are not, or may not be true. For one the assumption is that you have to wait 7 years after you settle your debts to buy a home.  That is not the case.  For some people (me included) settling an charged off debt was part of my mortgage application process.  It was a small debt that a doctor's office claimed I owed, but I didn't.  The mortgage company told me, settling the debt was ""the cost of doing business"".  Settling your debts can be looked as favorable. Option 1, in my opinion is akin to stealing.  You borrowed the money and you are seeking to game the system by not paying your debts.  Would you want someone to do that to you?  IIRC the debt can be sold to another company, and the time period is refreshed and can stay on your credit report for beyond the 7 years.  I could be wrong, but I feel like there is a way for potential lenders to see unresolved accounts well beyond specified time periods.  After all, the lenders are the credit reporting agencies customers and they seek to provide the most accurate view of a potential lender.  With 20K of unresolved CC debt they should point that out to their customers. Option 2:  Do you have 20K?  I'd still seek to settle, you do not have to wait 7 years.   Your home may not appreciate in 2 years.  In my own case my home has appricated very little in the 11 years that I have owned it.  Many people have learned the hard way that homes do not necessarily increase in value.   It is very possible that you may have a net loss in equity in two years.  Repairs or improvements can evaporate the small amount of equity that is achieved over two years with a 30 year mortgage.   I would hope that you pause a bit at the fact that you defaulted on 20K in debt.  That is a lot of money.  Although it is a lot, it is a small amount in comparison to the cost and maintenance of a home.  Are you prepared to handle such a responsibility?  What has changed in your personality since the 20K default?  The tone of your posts suggests you are headed for the same sort of calamity. This is far more than a numbers game it is behavioral." "I had to apply for an American Express card, which was also rejected.   Then I had searched for a Marbles Credit Card Stop applying for credit cards/loans. Doing so is just making your credit rating worse. Credit agencies will downgrade your credit rating if they see lots of signs of credit checking. It's a sign you're desperately looking for credit, which you are...! 44.9% APR This is very expensive credit. You can get personal loans on the high street for 3-4%. 44.9% is really bad value. You're simply going to make the situation worse. Am I taking off a loan from website as amingos loans to help me build   up my credit rating Again this is 44% interest! You also need a guarantor. So you're not only going to get yourself in trouble but a family member too: don't do this! This will only help your credit rating if you pay it back successfully, which given your situation seems like a risk. Contact the Money Advice Service or the National Debt Line. Explain your situation in detail to them. They are a government-backed service designed for people in your situation. They will offer practical advice and can even help negotiate with your creditors, etc. Here's some general advice about getting out of debt from Money Saving Expert Traditional debt help says 'never borrow your way out of a debt   problem'. But this ignores the varying cost of different debts. The MoneySaving approach is: ""Never borrow more to get out of a   debt problem.""" Call Comcast during a non-peak time (first thing in the morning?), wait on hold, and politely explain what happened and request a $50 credit. Also politely request that your premium support request be handled for free given how much hassle you've had getting disconnected. They'll be able to tell your premium request was never answered because there are no notes on your support tickets. Calling them is much easier than any of your other options. Here is what I did and what I sent to my daughter...   Here is how to freeze your credit with the three reporting companies.  1.  TransUnion (easiest and free). Go to https://freeze.transunion.com. If the site is down, you may have to try later (like late at night). You will have to register on the site to do this. I think on this one you need to also give them your previous address. 2. Equifax (not so easy, but works online), costs $10 [note your cost may vary depending on your State]. Go to https://www.freeze.equifax.com. You will have to register. I think this the one does not require the previous address (because you have been in at our location for more than 2 years) even though there is a section for it.  3. Experian (toughest one to get done, website is currently broken), costs $10 [note your cost may vary depending on your State].  You will need to do it by phone (takes 12-15 mins to get through the menus). Call 888-397-3742. Note there are LONG silent periods, so do not hang up. If they do disconnect you, it should be right at the beginning, and you just have to call back. You will need to have your credit card number ready to enter at the end (and you need to key in the digits fairly quickly, do not pause once you start entering them), and it will ask for a four-digit expiration date (for example, Aug 2019 is 0819) on the card. If it costs more to fix the car than the car is worth, then those repairs are not worth it.  Hit craigslist and look for another junker that runs, but is in your cash price range.  Pay to get it looked at by a mechanic as a condition of sale.  Use consumer reports to try and find a good model. Somebody in your position does not need a $15K car.  You need a series of $2K or $4K cars that you will replace more often, but pay cash for.  Car buying, especially from a dealer financed, place isn't how I would recommend building your credit back up. EDIT in response to your updates: Build your credit the smart way, by not paying interest charges.  Use your lower limit card, and annually apply for more credit, which you use and pay off each and every month.  Borrowing is not going to help you.  Just because you can afford to make payments, doesn't automatically make payments a wise decision.  You have to examine the value of the loan, not what the payments are.  Shop for a good price, shop for a good rate, then purchase.  The amount you can pay every month should only be a factor than can kill the deal, not allow it. Pay cash for your vehicle until you can qualify for a low cost loan from a credit union or a bank.  It is a waste of money and time to pay a penalty interest rate because you want to build your credit.  Time is what will heal your credit score. If you really must borrow for the purchase, you must secure a loan prior to shopping for a car.  Visit a few credit unions and get pre-qualified.  Once you have a pre-approved loan in place, you can let the deal try and beat your loan for a better deal.  Don't make the mistake of letting the dealer do all the financing first. "You say your primary goal is to clean up your credit report, and you're willing to spend some cash to do it.   OK.  But beware: the law in this area is a funhouse mirror, everything works upside down and backwards. To start, let's be clear: Credit reports are not extortion to force you into paying. They are a historical record of your creditworthiness, and almost impossible to fix without altering history.  Paying on this debt will affirm the old data was correct, and glue it to your report.  Here's how credit reporting works for R-9 (sent to collections) amounts.  The data is on your credit report for 7 years.  The danger is in this clock being restarted.  What will not restart the clock?  Ignoring the debt, talking casusally to collectors, and the debt being sold from one collector to another.  What will restart the clock? Acknowledging the debt formally, court judgment, paying the debt, or paying on the debt (obviously, paying acknowledges the debt.)  Crazy!  You could have a debt that's over 7 years old, pay it because you're a decent person, and BOOM! Clock restarts and 7 more years of bad luck.  Even worse-- if they write-off or forgive any part of the debt, that's income and you'll need to pay income tax on it.  Ugh!  Like I say, the only way to remove a bad mark is to alter history. Simple fact:   The collector doesn't care about your bad credit mark; he wants money. And it costs a lot of money, time and/or stress for both of you to demand they research it, negotiate, play phone-tag, and ultimately go to court.  So this works very well (this is just the guts, you have to add all the who, what, where, signature block, formalities etc.):   1 Company and Customer absolutely disagree as to whether Customer owes   Company this debt: (explicitly named debt with numbers and amount) 2 But Company and Customer both eagerly agree that the expense, time, and   stress of research, negotiation, and litigation is burdensome for both of us.    We both strongly desire a quick, final and no-fault solution.  Therefore:  3 Parties agree Customer shall pay Company (acceptable fraction here).    Payment within 30 days.  To be acknowledged in writing by Company.  4 This shall be absolute and final resolution.  5 NO-FAULT.  Parties agree this settlement resolves the matter in good faith.   Parties agree this settlement is done for practical reasons, this bill has not been established as a valid debt, and any difference between billed and settled amount is not a canceled nor forgiven debt.  6 Neither party nor its assigns will make any adverse statements to third parties relating to this bill or agreement.  Parties agree they have a continuous duty to remove adverse statements, and agree to do so within seven days of request.  7 Parties specifically agree no adverse mark nor any mark of any kind shall be placed on Customer's credit report; and in the event such a mark appears, Parties will disavow it continuously.  Parties agree that a good credit report has a monetary value and specific impacts on a customer's life.  8 Jurisdiction of law shall be where the effects are felt, and that shall be (place of service) regarding the amounts of the bill proper.  Severable, inseparable, counterparts, witness, signature lines blah blah. A collector is gonna sign this because it's free money and it's not tricky.  What does this do?  1, 2 and 5 alter history to make the debt never have existed in the first place.  To do this, it must formally answer the question of why the heck would you pay a debt that isn't real and you don't owe: out of sheer practicality; it's cheaper than Rogaine.  This is your ""get out of jail free"" card both with the credit bureaus and the IRS.   Of course, 3 gives the creditor motivation to go along with it.  6 says they can't burn your credit. 7 says it again and they're agreeing you can sue for cash money.  8 lets you pick the court.  The collector won't get hung up on any of these since he can easily remove the bad mark. (don't be mad that they won't do it ""for free"", that's what 3 is for.)  The key to getting them to take a settlement is to be reasonable and fair.  Make sure the agreement works for them too.  6 says you can't badmouth them on social media. 4 and 5 says it can't be used against them. 8 throws them a bone by letting them sue in their home court for the bill they just settled (a right they already had).  If it's medical, add ""HIPAA does not apply to this document"" to save them a ton of paperwork.  Make it easy for them. You want the collector to take it to his boss and say ""this is pretty good. Do it.""  Don't send the money until their signed copy is in your hands.  Then send promptly with an SASE for the receipt.  Make it easy for them.  This is on you.  As far as ""getting them to send you an offer"", creditors are reluctant to mail things especially to people they don't think will pay, because it costs them money to write and send.  So you may need to be proactive about running them down with your offer.  Like I say, it's a funhouse mirror." You can dial the phone systems of the credit reporting agencies directly to put a freeze on your credit report account. The phone systems require quick responses or the systems will fail you out, but **this work is relatively quick** and probably easier than trying to do this on the websites that try to re-direct you to buying credit monitoring services. Here are the phone entries you will make as a guide for the phone menu of each of the credit reporting agencies:  **Transunion** 888-909-8872:      enter zip code     press 3 to add freeze     enter social security number     enter date-of-birth as 8 digits MMDDYYYY     enter house number from street address then # key     choose a 6 digit security code     credit card number for $10 charge     4 digit expiration date of credit card MMYY  **Equifax** 800-685-1111:      press 3 to select freezes     press 1 to continue     say your state then 1 to confirm     enter social security number then 1 to confirm     enter house number from street address then # key, then 1 to confirm     press 1 to select a freeze     there will be a long pause at this point but when the bot comes back it goes very fast.          Write down the 10-digit pin provided XXXXXXXXXX then later,          Write down the 10-digit confirmation number provided XXXXXXXXX.          Press * to repeat both until you have it correct  **Experian** 888 397 3742      press 2 for freeze     press 2 for freeze     press 1 for add freeze     press 2 for no fraud report     enter social security number then # key then 1 to confirm     enter date-of-birth as 8 digits MMDDYYYY then 1 to confirm     enter zip code then # key     enter house number from street address then # key     press 2 for not blind     press 1 to pay by credit card     wait through list of charges by state     select credit card type 1 for mastercard, 2 for visa, 3 for american express, 4 for discover     enter credit card #, then 1 to confirm     4 digit expiration date of credit card then # key MMYY#  Cross-posted this from the megathread in r/personalfinance. You're going to have a huge problem getting approved for anything as long as you have an unpaid bill on your report. Pay it and make sure its reported as paid in full - ASAP. Once that settled, your credit will start to improve slowly. Can't do anything about that, it will take time. You can make the situation improve a bit faster by lending money to yourself and having it reported regularly on your report. How? Easy. Get a secured credit card. What does it mean? You put X amount of money in a CD and the bank will issue you a credit card secured by that CD. Your credit line will be based on the amount in that CD, and you'll probably pay some fees to the bank for the service (~$20-50/year, shop around). You might get lucky and find a secured card without fees, if you look hard enough. Secured cards are reported as revolving credit (just as any other credit card) and are easy to get because the bank doesn't take the risk - you do.  If you default on your payments - your CD goes to cover the debt, and the card gets cancelled. But make absolutely sure that you do not default. Charge between 10% and 30% of the credit limit each month, not more. Pay the balance shown on your credit card statement in full every month and by the due date shown on your monthly statement.  It will take a while, but you would typically start noticing the improvement within ~6-12 months. Stop applying for stuff. Not store cards, not car loans, you're not going to get anything, and will just keep dragging your scores down. Each time you have a pull on your report, the score goes down. A lot of pulls, frequent pulls - the score goes down a lot. Lenders can see when one is desperate, and no-one wants to lend money to desperate people.  Optimally lenders want to lend money to people who doesn't need loans, but in order to keep the business running they'll settle for slightly less - people who don't usually need loans, and pay the loans they do have on time. You fail on both, as you're desperate for a loan and you have unpaid bills on your report. "Excellent question.  I'm not aware of one. I was going to say ""go visit some personal finance blogs"" but then I remembered that I write on one, and that I often get a commission if I talk about online accounts, so unless something is really bad I'm not going to post on it because I want to make money, not chase it away. This isn't to say that I'm biased by commissions, but among a bunch of online banks paying pretty much the same (crappy) interest rate and giving pretty much the same (often not crappy) service, I'm going to give air time to the ones that pay the best commissions.  That, and some of the affiliate programs would kick me out if I trashed them on my blog. This also would taint any site, blog or not, that does not explicitly say that they do not have affiliate relationships with the banks they review. I suppose if you read enough blogs you can figure out the bad ones by their absence, but that takes a lot of time.  Seems like you'd do all right by doing a ""--bank name-- sucks"" Google search to dig up the dirt. That, or call up / e-mail / post on their forum any questions you have about their services before sending them your money.  If they're up front, they'll answer you."