Find the Best Credit Repair Companies in Madison, WI

How credit repair works in Madison

Before choosing a credit repair company, it’s important to understand how the process works.

1. The credit repair company gathers your credit reports from the three major credit reporting bureaus: Experian, Equifax and TransUnion
2. It then reviews them for errors and incorrect information.
3. If the credit repair company finds any errors, it contacts the credit bureaus to dispute the incorrect items. By law, incorrect items must be removed from credit reports if the bureaus aren’t able to verify them.

Some credit repair companies also offer credit monitoring and financial counseling that teaches you how to manage your debt. Before choosing a credit repair company, decide if these additional services are important to you.

How much does credit repair cost in Madison?

Madison credit repair companies charge $60 to $170 per month for their services. It’s common for companies to also charge a one-time setup fee of $15 to $130, which covers the cost of pulling your credit reports. Other companies charge a flat fee of $35 to $125 for each item they remove from your credit report instead of a monthly fee. Before signing a contract with any credit repair company, ask if they charge any additional fees.

Madison credit repair companies cannot legally request or receive payment for services until they show that they have performed work on your behalf. If a company requires payment before providing any service for you, find a new credit repair provider.

Madison credit repair regulations

Credit repair scams are common, but federal and state laws help protect consumers. The Credit Repair Organizations Act is a federal law that regulates credit repair organizations and protects Americans from credit repair scams. Under the Credit Repair Organizations Act, credit repair companies must:

• Provide you with a written contract specifying the services they’re providing and the terms and conditions of payment.
• Give you three days to cancel the contract.
• Not ask for upfront payments for services they haven’t yet provided.
• Not suggest you make false claims about your credit accounts or alter your identity.
• Not knowingly mislead you about the services it is capable of offering or how quickly it can repair your credit.
• Not ask you to sign anything that forfeits your rights under the Credit Repair Organizations Act. Any such waiver is not enforceable.

In addition, Wisconsin state law requires credit service organizations to give consumers five days to cancel a contract after signing, return payment after that cancellation and be bonded. This law also ensures that Madison credit repair companies represent their services accurately.

Madison credit repair FAQ

What is a FICO score?

A FICO score is a credit score created by the Fair Isaac Corporation. This company references a variety of credit information from the three major credit reporting agencies — Experian, Equifax and TransUnion — and uses that information to calculate your FICO score. Many lenders in Madison use FICO scores to evaluate applicants, manage accounts and determine terms and rates.

Is credit repair legal in Madison?

Yes, credit repair is legal in Madison as long as credit repair companies comply with the Credit Repair Organization Act and Wisconsin state laws. To report a company engaging in illegal practices, file a complaint with the Federal Trade Commission.

How common are credit repair scams in Madison?

Credit repair scams are quite common in Madison. The state of Wisconsin cautions working with any companies that guarantee they can erase bad credit or remove bankruptcies from your credit report. Asking for payment upfront before providing any service is also a red flag, but this does not apply to setup fees.

Who regulates credit repair companies?

The FTC regulates credit repair companies and has the authority to shut down credit repair companies that violate any portion of the Credit Repair Organizations Act. The Wisconsin Department of Financial Institutions also has its own set of regulations that credit repair companies in Wisconsin must adhere to.

How long does it take to repair credit?

Working with a Madison credit repair company is not a quick fix. The credit repair process can take anywhere from 45 days to six months, depending on how many incorrect items your report has. All told, it can take up to a year for your credit score to improve.