Pay Per Delete Credit Repair is a popular payment option amongst other payment options. Of course, why wouldn’t it be, clients pay nothing unless items are deleted from the credit report? That is true, and there are many advantages. However, there are many disadvantages. We at Credit Wellness Solutions want people to be fully informed about their options when it comes to choosing credit repair, even if the reader does not become our client. We are going to discuss this
popular option today and explore the advantages and disadvantages. Many credit repair companies only offer 1 option of payment. At Credit Wellness Solutions, we believe in client choice. We believe the client should be in the driver’s seat their entire credit repair journey. Keep reading to learn more about pay per delete credit repair or click the button to learn more about Credit Wellness Solutions.
Monthly Credit Repair vs Pay Per Delete Credit Repair
Let’s take a moment to explore monthly credit repair and do a comparison. In monthly credit repair, you typically pay a first work or onboarding fee, then pay a fixed monthly credit repair fee for monthly service. This fee is charged each month and is charged on the same day AFTER service is performed. After being capitalized is critical because if you are charged BEFORE service is performed, then the company is out of compliance with law. This fee is charged each month regardless of results. Monthly credit repair services tend to be faster because of 2 reasons:
- Because the company is getting paid monthly, it has to be persistent to achieve results to avoid attrition.
- The company will dispute everything at once because the contracts tend to be shorter terms (6 months to 1 year)
Monthly credit repair is typically best for those who seeking help to get approved for a mortgage, those in a time crunch, or those who are on a set budget. Unfortunately, some of the larger companies who are more well known, but known for showing no results, or scammers also use the monthly payment model. Be sure to shop wisely and look for credit repair scams.
We did a couple articles about avoiding credit repair scams that you can read here or here. You can also read this article from the Consumer Financial Protection Bureau (CFPB) here. The reason larger companies are not as effective is because they use credit repair software, and old template letters that just do not work anymore. They typically only spend 5-15 minutes per client monthly.
In Pay Per Delete Credit Repair, you pay a first work or onboarding fee (typically higher than the monthly model), then you do not pay any substantial fees (there may be communication or postage fees), unless the status of the account is improved (ex: charge-off moved to paid, 60-day late made a 30-day late or marked on-time) or the account is deleted.
This payment model is typically used by smaller companies who are trying to get more business, and you will find more reputable companies using this model. Pay Per Delete Credit repair is best for those who are not in a hurry, not on a set budget, and for those who are skeptical of credit repair.
Companies who use the pay per delete model, tend to be even more aggressive. They will take their time and be a little more methodical. Most of these companies employ the use of factual disputing, or pre-litigation dispute methods will setup a case for the client to be able to get the account removed or improved, even if it has to go to arbitration or court.
You will also likely receive more personal service, and the company will spend more time working on your file, typically spending a few hours a month. This is critical for them as they are pulling all stops to get the deletion for you.
Advantages Of The Pay Per Delete Credit Repair Model
Now that we have discussed some of the differences between pay per delete credit repair and monthly credit repair, let’s discuss the advantages of the pay per deletion model. Some of the items you may already have seen in the comparison above, but let’s dig a little deeper. Shall we?
- You pay nothing substantial until an item is removed or improved. – For the most part this statement speaks for itself. However, if you are skeptical of credit repair, shopping for a company that offer pay per deletion may be the right fit to make credit repair a comfortable option for you.
- Credit repair companies tend to be more aggressive, thinking outside of the box to get deletions and your credit improved – Rather than launching “609 disputes”, or using an automated software’s cookie-cutter template disputes, pay per deletion credit repair companies will learn new techniques, draft disputes by hand, or even setup a case for litigation or arbitration to get that deletion.
- More time is spent on your file – Credit repair companies using the pay per deletion model will spend hours on end, looking deep for errors, omissions, and inconsistent reporting amongst the credit bureaus. Although this goes hand-in-hand with #2, it goes without saying that you will get WAY MORE personalized service, and likely more results.
- You may GET PAID for fixing your credit – Because of the more creative innovation by the credit repair company, you may actually receive settlements from litigation or arbitration in addition to getting your deletion, and your credit fixed.
- Less chance of getting scammed – You simply will not find scammers offering pay per delete credit repair. Since you don’t pay anything substantial unless you get a deletion, there is much less chance the company will take your money and run.
Disadvantages Of Pay Per Delete Credit Repair
Now that we have discussed the advantages of the pay per deletion model, let’s not forget that everything has its disadvantages as well. Let me preface this by saying that there are a gracious plenty of reputable companies that use the monthly credit repair model, so don’t let anything we say about scams totally deter you from that.
We only want you to see the pros and cons of pay per delete credit repair so you can choose what is right for you. We offer both monthly and pay per deletion at Credit Wellness Solutions because we want our clients to be in the driver’s seat. But even if you don’t become our client, we want to help consumers choose wisely, and be well informed before choosing a credit repair company.
- Pay Per Deletion may not be budget friendly in the long run – Since you are paying the company for deletions or improvements, if the company has a lot of results in a short period of time, you could wind up with a huge bill to pay. Also, startup fees tend to be higher than the monthly payment model.
- Pay Per Delete credit repair is not the fastest solution – Since the company will have to be more creative in how they dispute your bad items, it may take longer to complete the job.
- Contracts tend to be longer – Because the company is working diligently to achieve the deletion so they can get paid, contracts may be longer terms. The average credit repair contract is 6 months to 1 year. Some pay per deletion contracts can be as high as 2 years.
- Less focus on credit building or credit education – Since the company is trying to get deletions instead of overall improvement of credit scores, the company may feel little incentive to educate you about credit so you can make changes on your own or use credit building to improve your score.
- Higher chances of running into a “credit sweep” – A credit sweep is a strategy in which the “sweeper” is getting you to file a false police report so they can dispute the negative items on your credit report as identity theft to get the deletion. This practice is HIGHLY ILLEGAL and can land both you and the sweeper in jail. Avoid anyone advertising credit sweeps like the plague!
Final Thoughts On Pay Per Delete Credit Repair
Pay per delete credit repair can be a very powerful credit repair experience for you. It gives you peace of mind knowing that you won’t be paying unless you get results. As you see, this payment model doesn’t come without its disadvantages, but everything in life has disadvantages. Since we believe consumers should be in the driver’s seat, we offer both monthly credit repair and pay per deletion. However, by far the most popular choice
amongst our current clients has been the pay per deletion plan. It is always wise to shop around for your credit repair and go with who you feel comfortable. We want to educate consumers about credit repair and their options, even if you don’t become our client.
Let’s face it, scammers exist in every industry, credit repair happens to be one of the most targeted industries where scammers like to work. Educate yourself and you will steer clear of them. There are a plethora of great people in the credit repair industry who genuinely want to help and get you the credit profile you deserve. Shop wisely and choose who you are comfortable with.
Credit Wellness Solutions is more than just a credit repair company, we take our time, and work diligently to get clients the credit profile they deserve and help them achieve their goals. Whether it is to purchase a new home, new car, or just to get better credit, Credit Wellness Solutions will educate you so you can keep your credit healthy, and we can possibly get you paid for the mistakes on your credit report.
Even if you don’t become our client, we hope you find value in today’s article. If you are ready to take the next step, click the button below to schedule a Free Consultation with us. Even then, if you don’t become our client, you will leave the consultation with a good solid education and empowered to improve your credit. We look forward to meeting you!
