Best Credit Repair Companies in Santa Barbara, CA

The need for credit repair in Santa Barbara

The average credit score in California hovers around 680, slightly above the rest of the country. However, the Bureau of Economic Analysis estimates that living in Santa Barbara is 9.5% more expensive than the national average cost of living, and these added living expenses make it easy to rack up bad marks on your credit report.

Having bad credit in Santa Barbara could affect the results of a rental application, a bank’s loan approval or even an employer’s hiring decision. That’s why it’s important to take action to improve a poor credit score.

Raising your credit score helps you:

• Qualify for credit cards
• Get lower interest rates
• Avoid needing a cosigner

Types of credit repair services

Credit repair companies in Santa Barbara dispute inaccuracies on your credit report and work with creditors to remove negative marks, like late payments, if they are false or unverifiable. They also offer credit counseling and advice on how to add positive information to your credit reports.

The credit bureaus have to respond to disputes within 30 days, so credit repair in Santa Barbara generally takes three to six months to resolve disputes on your credit report. However, actually raising your credit score can take years, depending on your financial history.

While you’re working with a credit repair company in Santa Barbara, take additional steps to improve your credit score such as paying your bills on time, avoiding late payments and monitoring your credit report.

How much does credit repair cost?

Prices vary between credit repair companies in Santa Barbara, but expect to pay about $70 - $120 a month for credit repair services. Some credit repair companies may charge you a fee for accessing your credit report as well.

Consider taking advantage of any additional services your credit repair company offers as well, such as credit monitoring or identity theft protection.

How to avoid credit repair scams

Be wary of credit repair scams in Santa Barbara that prey on people desperate to repair their credit score. When you work with a credit repair company, you’re entrusting them with your personal and financial data, so it’s crucial you select a company you trust. Here are some things to keep in mind as you make your selection:

• If a company offers a free consultation, use that as an opportunity to get a feel for how they do business.
• Make sure any potential credit repair company has years of experience and consistent reviews from happy customers.
• Find a credit repair company that offers a money-back guarantee.
• If your credit repair company offers credit counseling, make sure they’re on the Department of Justice’s list of approved credit counseling agencies.

California’s Credit Services Act sets standards and regulations for credit repair companies, which it refers to as credit services organizations. This law requires CSOs to register with the California Department of Justice and obtain a $100,000 bond. It also forbids CSOs in Santa Barbara from:

• Lying to you
• Removing accurate information from your credit report
• Creating a new credit record for you
• Charging you for services upfront

Under the U.S. Credit Repair Organizations Act, legitimate credit repair companies must provide a written contract with a three-day cancellation policy as well.

Use these policies as a litmus test for credit repair scams. Any credit repair company in Santa Barbara that doesn’t abide by these regulations isn’t worth trusting with your credit score.