When it comes to credit repair, many companies offer their services. But how do these companies work to fix bad credit? And more importantly, is it possible to fix a bad credit score? Let’s take a look at how the top credit repair companies work and what you can expect from their services.

What is a credit repair company?

A credit repair company is a business that will offer to help you fix, or improve your rating. They might be able to get rid of the black marks on your credit report – like bills in collections, late payments, missed payments, etc. They can also assist by getting negative items deleted from your report. If you are currently unable to pay off all of your debt, or if you have recently lost your job and are struggling with bills, credit fixing companies can be really helpful. However, is it truly possible for a company to fix bad credit?

Depending on your situation, it might be possible for a company to get negative items removed from your report. However, the only way to truly fix bad credit is by getting rid of all of your debt and establishing an emergency fund – so that you can handle life’s financial emergencies without relying on the use of credit cards or loans.

How do credit repair companies work?

If you have a bad FICO score and are in a position to hire a company to fix your credit, you will need to pay a fee – which can range from $150 all the way up to $1500 depending on how much work needs to be done. The price they charge is dependent upon the number of negative items on your report.

The most common strategy used by repair companies is to dispute all of the negative items listed in your file with the three major bureaus (Experian, Equifax, and Transunion). This method falls under what’s known as a “soft hit” – meaning that it won’t have a massive effect on your credit rating.

The good news is that the negative items will be removed from your file and this means that for most people, their scores will increase. This is because there are three major credit bureaus and each one of them might have a different score associated with you. A new bad mark on your report could cause all three – or even two of the bureaus to lower your score. If you remove one or two bad marks from your file, the bureaus might increase your score since there are fewer negative items associated with it – this means that you’ll get a boost in your FICO score.

How to choose the right company?

There are a few things to look for in a credit repair company, the most important of which is how much experience they have. If you choose a new company that has just started up, there’s no guarantee that your file will be handled correctly or that it will be handled at all.

Another thing you should look for in a good company is whether or not they offer a guarantee – the top companies will offer you a full refund if your file doesn’t benefit from their services.

The best method of choosing the right repair company is to do some research and read reviews about them on reputable websites such as Google+. If you’re not familiar with SEO (search engine optimization) then you can simply do a Google search for “credit repair reviews” and check out the results that appear on page one. By doing your research, you should be able to find a reputable company with lots of positive feedback.