Is Credit Repair Actually Worth it? – The TRUTH About Credit

06-18-2020 Home  »  Money  »  Is Credit Repair Actually Worth it? – The TRUTH About Credit

So Credit Repair. Is it actually worth it?

If you look at any of my credit videos on YouTube, you’ll see that the comment section is DOMINATED by bots with fake stories claiming they went from a 400 credit score to a 780 in a few weeks. 

I mean there are hundreds and hundreds of comments just on my videos. Probably millions of comments like these across YouTube pitching amazing stories of credit repair.

So are credit repair companies legit and actually worth it if THIS is their marketing strategy? Seems a little shady right?

Is credit repair actually worth it? Or could you repair your credit on your own?

Let’s talk about the TRUTH when it comes to credit today.

If you didn't know, I’m a Mortgage Lender so I see “credit repair like” situations every single day, making me probably the perfect person to talk about a subject like this.

For example, if someone is trying to buy a house and their credit is too low, 95% of lenders just want you gone. They will send you to credit repair.

Do I do that? Not most of the time, and I’ll tell you why in a bit.

But know that, credit repair companies call me ALL THE TIME trying to get me to send my rough credit clients to them for credit repair. So I’ve seen it all.

I know all the BIG companies like LexingtonLaw, SkyBlue, CakeCredit, Ovation, Credit Assistance, the list goes on and on. But bottom line, most of them are pretty much the same story, different day.

They all CLAIM to get my clients to the closing table ASAP. Which means they all pitch the same thing, “pay us and we’ll get your credit up LIGHTNING FAST”.

When in reality, every situation and every credit report is COMPLETELY different than the next. So making claims like that is ignorant.

Some people are literally in a situation where their credit WILL NOT, NO MATTER WHAT get to the 700+ range within 6 months. They might have judgements that can't come off until paid, tax liens that, again, can't come off until paid. On top of those things, there could be a bankruptcy, tons of recent inquires, etc. I mean it could be a nightmare that requires much more resources and time than these credit repair companies lead you on to believe. So if someone says they got you no problem, they’re probably blowing smoke up your ass.

Now I don’t want to poop on ALL credit repair companies because some companies are decent but hold on.

When do I NOT send or recommend people to do credit repair?

Well it depends on the credit report. If the only thing that’s bringing down your scores are maxed out credit cards and a few collections, I DO NOT EVER RECOMMEND CREDIT REPAIR. EVER.

WHY PAY SOMEONE $100+/month or $650+ per program, for them to tell you, "just pay off your maxed credit cards." 

I know that sounds crazy, but this legit happens ALL THE TIME. Plus, if you have collections, they aren’t that hard to get removed.

So bottom line, get yourself a credit report to see what in the hell is going on. Another resource is a video I posted, how to fix bad credit scores as quickly as possible. As I go through EVERYTHING that COULD be on your credit and how you actually go about fixing it yourself.

Plus I talk about in that video how you can get yourself a FULL and FREE credit report. Which is imperative and step 1 in fixing your credit.

Credit repair isn’t that challenging if you know what’s going on. It just takes a bit of effort and time, nothing crazy just four hours. 

Think about it, if you pay a credit repair company $100/mo, even if they pay their employees a measly $12/hr. That means they probably only work on your file for four hours a month, if that. Because the other $52 goes towards all the overhead the company has and of course, the youtube bots. 

So if you have four hours a month, you have time to fix your credit. Plus you can apply that $100 that would have gone to credit repair, to your debt instead. 

Soooo is credit repair worth it? By this point you’re probably thinking my opinion on the matter is “hell no” right?

Well not quite.

Credit repair does make sense and is worth it in 2 situations:

1. You do NOT have any time to focus on your credit and more importantly: YOU ARE NOT DEDICATED. You HAVE to truly WANT to fix your credit to be motivated to do it on your own. Plus, if you’re just way too busy and you’d rather pay someone else to do it for you, then yes credit repair does make sense.

2. Your credit needs some serious work. Like there’s just SO much on it that it would take you forever to fix it yourself. I mean we’re talking everything under the sun is on there and it’s just overwhelming to tackle yourself. Then yes, credit repair.

 That’s it.

Those are the ONLY two situations where credit repair makes sense. Not only that but you need the budget for it, which most people don’t and is why 9 out of 10 don’t follow through with working on their credit.

So bringing this full circle, I ONLY refer my clients to credit repair if their report needs some SERIOUS work. And again, 9 times out of 10, most people don’t follow through with it because they don’t want to spend the chedda. Which is understandable.

But I already know I’m going to get tons of people asking me, “Well Shawn, which is the best company for credit repair then?” or “who do you refer your clients to?”.

Now I’ve done a lot of research and have tested out NUMEROUS credit repair companies. And with that being said, I’m not compensated in any way whatsoever for saying this, but MyCreditGuy is probably my favorite so far.

I’m going to warn you right now. THEY ARE NOT THE CHEAPEST OUT THERE. But remember cheap credit repair doesn’t do you any good. In fact, it’s probably counter intuitive.

So their prices are a little steep in my opinion compared to the competition but they will 100% fix your credit in the timeframe they tell you when you sign up. They have yet to of failed one of my clients. I’ve spoke to their CEO Sam Parker on multiple occasions and they do really know their stuff when it comes to credit.

But remember, you should ONLY GET INTO CREDIT REPAIR if you don’t have time to focus on it yourself or your credit report is in incredibly bad shape.

Otherwise you should really do the credit repair yourself because most credit repair companies are like the lottery, a tax on the poor.

So there you go! That’s the TRUTH about credit. Make the decision for yourself if Credit Repair Actually Worth it FOR YOUR SITUATION? Because again every situation is different.

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Hi, I'm Shawn Malkou. I'm determined to help you succeed. My question is, are you ready?

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About Shawn Malkou

He is the shawn-of-all-trades. Starting his entrepreneurship journey at the age of 14 with a dream and a single YouTube channel, he’s then since broken into countless industries. As the founder of Dream2Succeed, co-founder of DishTheDeal, co-founder of DirectionDesk, and lover of all things media – Shawn prides himself in picking up a new skill quickly to then share with others.

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Ready for the
next level?

Hi, I'm Shawn Malkou. I'm determined to help you succeed. My question is, are you ready?

Let's Do It