Pay Per Deletion Credit Repair: Is it worth it?
Pay per deletion credit repair may end up costing you more than paying a flat monthly fee. According to Creditcards.com, only ten percent of credit repair agencies will do pay per deletion. Why do so little companies do it, and what is the risk?
What is Pay Per Deletion
Pay per deletion is a pricing model used by credit repair companies. Instead of charging a flat monthly fee they charge the customer a per item fee for each successful removal. Pay per deletion credit repair companies can work, but it's important to factor in your total cost.
Advantages of Pay Per Deletion
Despite the lack of participation of the majority of credit repair companies, pay per deletion does have its advantages. Pay Per deletion is useful if you are diligent about your payments and credit and have little derogatory marks on your credit. Say you have had one slip up with a late payment, but the rest of your report is perfect. There is no point in hiring a monthly repair company for hundreds of dollars to dispute one item.
There is no point in hiring a monthly repair company for hundreds of dollars to dispute one item.
Disadvantages of Pay Per Deletion Credit Repair
While there are upsides to pay per deletion credit repair, there are also many downsides including high expenses, no guarantees, and legal risks. Because there are three major credit bureaus, many creditors report to all three. Which is a good thing for positive items, but for negative items it multiplies the dispute process times three. Pay per deletion companies charge per item deleted, that would be tripling the expense if the item was on all reports. Another issue is that there are no guarantees if the specific item(s) you want to be disputed will come off your credit report. Finally, pay per deletion is known to be shady. It doesn’t have to be, but it is easy to fall into something unethical. There are ways to use this strategy legally and helpful way, but generally, you end up paying more.
Is Pay Per Deletion the way to go?
If you’re wildly consistent with payments, and the pros outweigh the risk of being overcharged, the possibility of no items being removed, and the legal risks, then it might be right for you. On the other hand, if you want a small fee where all of your negative items will be disputed and deleted within a matter of weeks you may want to go with the more affordable and consistent option like Credit Innovation Group.