Credit Repair What Is It and Does it Work?

9th Jan 2024

Most people are aware of the significance of maintaining a positive credit score, as it can make you a more attractive customer when applying for credit and can result in lower interest rates. If your current credit score leaves room for improvement, you might have considered the services of a credit repair company, which advertise widely online and promise the earth. Is it worth potentially paying out more money to a third party organise to fix your credit rating, or is it something you can manage yourself?

Understanding Credit Repair Companies

A credit repair company is private company which offers to improve your credit score in exchange for a fee. These companies feature heavily in online searches and also advertise their services on social media channels. Credit repair companies claim to work by identifying and fixing inaccurate information contained in your credit report. They first get your credit report from the major UK credit referencing agencies, like Experian, TransUnion, and Equifax, and then come up with a plan for correcting any errors they find.

But Does Credit Repair Work?

As of now, there is a lack of reliable statistics on the effectiveness of credit repair services, and it’s impossible to say whether they actually have a positive impact on average credit or not. While some individuals may report success stories of improved credit scores, the results are not guaranteed. Legitimate credit repair companies can potentially assist in identifying and removing errors from your credit report, but this is not a service you can only get by paying a fee for credit repair. Anyone can contact one of the credit referencing agencies to ask for a copy of their report, search through for any mistakes, and then ask for mistakes to be corrected. Although you may have to pay a small fee to the credit referencing agency for a copy of your information under a data access request, this will be considerably less than fees paid to a credit repair company.

Should I Pay for Credit Repair Services

Whether credit repair services are worth it really depends on your individual circumstances and personal preference. Many services offered by credit repair companies, such as reviewing and disputing errors on your credit report, can be done by customers themselves. However, the process can take some time, especially if you are asked to provide evidence in support of having a mistake removed. Communication with lenders and credit agencies may require time and effort, and many people think this is a service which is worth paying for.

Finding a Credit Repair Company

Before signing up with a credit repair company, carefully consider whether they offer genuine value for your money. Always do your homework on any company you are thinking about using by checking online reviews on platforms like Trustpilot. Be cautious about companies which guarantee to improve your credit score, or which promise to remove negative information automatically. Personal recommendation is probably the best way to find a company you trust.