Whether you want to get a home loan, start a business or reduce your interest rates, it helps to have good credit. Credit repair experts have the skills, experience and resources to make the process easier and more efficient. Consumer Affairs researched the best credit repair in Detroit, picking companies with successful track records to help you improve your score.
Detroit has been through tough times and they’ve made a lasting impact on the wallets and credit scores of the people who live here. According to the Urban Institute, 66 percent of Detroiters have low credit scores and 68 percent have delinquent debt.
Detroit is ranked #8 on a list of the 500 cities with the lowest credit scores. The average credit score in Detroit is 565, well below the state and national averages of 677 and 695 respectively.
Bad credit can cost you
A low credit score makes it harder to access loans and lines of credit, and it costs more when you do. The table below shows the monthly payment and cost in interest for a $20,000 fixed interest rate auto loan at different credit levels.
Total interest cost
A good credit score can save you thousands, but the process of getting one doesn’t happen overnight.
Minor hits to your credit score, caused by maxing out a credit card or closing an account, take about three months to resolve, but the damage caused by missed payments and defaults requires more time to repair.
On average, it takes two-and-a-half years to rebuild bad credit if you know what you are doing and have the time to do it. That’s where credit repair companies come in.
How credit repair works in Detroit
Credit repair companies obtain and review your credit reports, identify items eligible for dispute and file disputes on your behalf. While you can do this on your own, credit repair companies in Detroit employ little-known strategies for the best results. They also provide credit counseling, credit monitoring and goodwill and cease and desist letters, as needed.
Credit repair cost in Detroit
The cost of credit repair in Detroit varies, but most companies charge a one-time enrollment fee followed by monthly payments ranging from $75 to $200.
How to avoid credit repair scams
Watch out for companies that pressure you to pay for services in full and up-front or guarantee items will be removed from your credit report. Reputable credit repair companies don’t promise quick solutions. Be wary of ones that do.
The law requires credit repair companies to provide an approximate time frame for results, the total cost in advance and a written contract that includes your rights.
Finding the right company is important because there are scams. The best way to avoid being duped is to know your rights and be on the lookout for warning signs.
With multiple specialists assigned to each client, Credit Saint customers have a whole team fighting on their behalf to dispute false claims and assist with credit restoration. Customers say the personalized credit repair plans are easy to follow and the responsive customer service is quick to resolve issues and answer questions.
For a personalized credit consultation and a copy of your credit report, Lexington Law has you covered. Customers rave about the ease of the process and helpful advice, but most of all how great it feels to have a high credit score. Their Waterford office is especially praised in online reviews.
In addition to low monthly pricing, The Credit People also offers an Unbeatable Satisfaction Guarantee which allows customers to cancel at any time, refunding the previous month. Customers appreciate how little they have to do to get an improved credit score.
Customers in Detroit love this company. Many attest to their successful dispute record and that after working with Sky Blue they had higher credit scores. Sky Blue Credit Repair offers professional analysis, credit dispute services, credit rebuilding, goodwill letters, debt validation, negotiation guidelines and advice on little things you can do to improve your credit score.
As one of the country’s fastest-growing financial technology firms, The Credit Pros is an ideal choice for debt-free technophiles looking to grow their credit, receive advice and have access to financial education tools. Customers say their blog offers some of the easiest to understand and most practical tips for repairing your credit score, but that their price is a little steep for anyone strapped for cash.