Credit Repair Software Options: Kits, Simulators and More
January 7, 2020
Tracking and maintaining your credit score can be intimidating without professional support. Nearly one in five consumers have an error one one of their three credit reports contain negative errors. This can affect your borrowing power, interest rate or job prospects.
Credit repair businesses provide a range of tools to track your score, catch harmful errors, address negative items and help you make informed decisions going forward. Just as you should always choose a credit repair business that’s well-reviewed, highly experienced and complies with all federal standards, you should apply the same qualifications to credit repair software.
In this post, we’ll review three of the most common types of credit repair software—credit cleaning kits, credit simulators and credit score trackers—and see how they compare to the services of credit repair organizations.
Credit Cleaning Kits
Credit cleaning kits include books, ebooks or software with step-by-step instructions for improving your credit and FICO® score. These kits educate and offer tools for fixing credit errors and increasing your score. They may also offer advice on handling negative items, identity theft and writing credit dispute letters.
To find the best credit cleaning kit, it’s important to read reviews and understand a business’ reputation before investing in a program.
Credit cleaning kits are best for those looking to take their credit into their own hands. They aim to educate borrowers to improve and maintain good credit scores in the long run.
For many, a credit cleaning kit strikes the balance between professional guidance and self-driven financial growth.
Benefits of a credit cleaning kit:
- Credit education materials
- A one-stop location for understanding credit reports from all three bureaus
- Full ownership of the software for future use
- Available updates for ebooks and software as regulations change
Drawbacks of credit cleaning kits:
- High cost for a comparatively low amount of professional support
- Legwork falls to the customer
- Lack of personalization for improving your unique credit report
- Varying quality of credit kits
- If in book form, information becomes outdated faster than software
A credit simulator uses your personalized credit data to simulate the outcome of specific financial decisions.
For example, if a borrower considers opening a new credit card, they can enter their information into the simulator to estimate whether it will raise or lower their score. They can also use credit simulators to plan their debt repayment or fix negative items over time.
Credit simulators keep borrowers aware of how their decisions affect their credit history.
Benefits of credit simulators:
- Clarify the risk of opening or closing lines of credit
- Educate borrowers on the effects of their spending and repayment habits
- Encourage greater financial literacy
- Provide suggestions for improving your credit score
Drawbacks of using only a credit simulator:
- Does not identify or address errors on your credit report
- Typically miss potential identity theft risks
- Many online simulators still have inaccuracies or inconsistencies
- Does not take the big picture into account—many simulators are only able to address the effect of making one change at a time
Credit Score Trackers
Credit score trackers, also known as credit monitoring services, keep borrowers up to date on any changes to their report. Trackers pull information from the major credit bureaus to present a full picture of their credit health.
Depending on the credit tracking software, borrowers can check their scores, address new marks on their report and flag signs of identity theft. More advanced programs can search the dark web for signs of identity theft or make credit repair suggestions for improving the borrower’s score.
Credit score trackers are best for those looking to maintain good credit and stay aware of any sudden changes.
This tool may not be enough for people who are looking to improve their credit history or clean up their credit report—credit score trackers only monitor changes, they don’t always offer help with fixing credit.
Benefits of credit score trackers:
- Up-to-date reports on changes to your credit score
- Borrowers can see the big picture of their financial health
- In-depth security and identity theft alerts
- Lower investment than other products—free options are available online
Drawbacks of using credit score trackers:
- Service reports errors but doesn’t offer assistance
- Trackers can still be expensive without offering extensive services
- Credit bureau trackers may include an arbitration clause to protect the company in the event of a security breach
Credit Repair Organizations
Credit repair organizations help manage the whole process for their customers. A credit repair business identifies credit errors, writes dispute letters on a borrower’s behalf and makes financial suggestions for improving a borrower’s overall score.
Similar to hiring an accountant for tax season, credit businesses—like Lexington Law Firm—may catch overlooked errors or provide new insight. These organizations are ideal for those looking to save time while diminishing the chance for error.
Choosing the Best Credit Repair Software Option (or Alternative)
Options like credit cleaning kits and credit simulators may be helpful if you’re trying to rebuild your credit or fix your credit yourself. However, this software normally lacks in-person, professional expertise that you may need depending on your situation.
Lexington Law has a knowledgeable team ready to help you navigate your credit report and tackle any unsubstantiated, inaccurate or erroneous marks on your credit report.
If you’re interested in learning how we can help you, contact us today for a free personalized credit report consultation.
Call For A Free Credit Report Consultation
Lexington Law has helped clients work towards fair and accurate credit scores by leveraging their rights. We’ve helped hundreds of thousands of clients remove unfair, inaccurate and unverified accounts from their credit reports.Call 1-855-255-0139