A credit fixing company is an organization that helps consumers fix errors on their credit reports by analyzing those reports and sending disputes to the bureaus and creditors on their behalf. These companies also offer advice and assistance to their clients for a fee, which can vary widely. They may charge an initial setup fee and then a monthly subscription fee for their services.

When evaluating potential credit repair companies, it is important to review their terms of service and costs carefully. Look for a clear explanation of their services, how long they expect it to take and any guarantees or refund policies. Additionally, check out consumer reviews of the company from sources like Yelp and the Better Business Bureau.

Typically, credit repair companies begin the process by pulling the consumer’s credit report and reviewing it for inaccuracies. Then they identify which items to dispute with the credit bureaus and with the information furnishers who reported the negative information to the bureaus. Credit repair companies then prepare and send letters to the credit bureaus and the creditor requesting removal of the inaccurate information.

As the credit repair process continues, consumers can monitor their progress by checking the status of disputed items on their credit report. The credit bureaus are required to respond to any disputed items within 30 days, and they must correct or remove them if they can prove that the item is incorrect. Many credit repair companies keep track of the status of each disputed item and send reports to their clients with the latest information, which can help consumers determine whether their efforts are working.

It is important to understand that credit repair companies can only work to remove inaccurate information from a credit report, and they cannot remove accurate information such as late payments or collections from a credit history. While these organizations can be helpful for people who need help disputing inaccurate information on their reports, there are ways that consumers can improve their own credit scores without paying a credit repair company, such as making timely payments and keeping their debt levels low. Also, if you find an inaccurate item on your credit report that is not legitimate, you can file a free dispute with the credit bureaus or the information furnisher directly. The best credit repair companies will help you navigate the process and teach you how to improve your credit score on your own.