Paying For Credit Repair - How Much Does It Cost?

The market for credit repair services is massive. Given that we have just been through the largest global recession in recent times, many consumers have suffered the ill effects of a decline in household wealth, income, and consumer confidence.

For many, this has resulted in the inability to pay debts, service bills, and other regular financial requirements. Logic would follow that these repayment issues will negatively affect our credit scores.

This is the direct reason why the market for credit repair services has grown exponentially. But is the service actually worth it, and do they produce viable results? We put one to the test to find out.

Costs of a Premium Credit Repair Service

Many consumers are paying up to $100 per month for a credit repair service. Unfortunately, this is a huge premium - and often the return on this investment is woefully low. If these consumers were to look for such a service on the Internet, they would find just as good a quality provider for a quarter of the price.

We signed up to a credit repair service with a charge of $18.95 a month. In return, we were promised the following:

• Overall score increase of 25 points per month.
• Credit Monitoring facility to audit any changes.
• Regular updates & progress reports.

One month on, and our score had increased by 28 points. The following month, the score increased by a further 25 points - and this is where we stopped the service. In total, 53 points were added to our credit score over just a two-month period - which is an excellent effort, given the price that we paid.

Drawbacks of a Credit Repair Service

Unfortunately, there are a few things that you need to be aware of before signing up to a credit repair service. Firstly, you need to keep in mind that when you finish or terminate your contract with the company, you risk a reversal in your credit score as a result of this.

You need to understand that the techniques which these companies use only enable a higher score whilst you are a member. Therefore, if it is a long-term credit repair service you are looking for - be prepared for the yearly cost, as it can soon mount up.