If you are trying to repair your credit, you might have heard of pay per deletion/dispute pricing by credit repair companies. Maybe you are not sure what it is, how it works, or if it is the right way for you to go. Your credit repair company may not always tell you all you need to know about this, so here are some things to help you decide the best way to go.

How it all works
Pay per deletion/dispute is a pretty simple concept. A credit repair company will take on your case, research your credit with each of the three credit reporting agencies, and identify items on your credit report that you should dispute. The company will be able to tell you whether you have a good chance of getting the negative items removed, and how well deletion of that item will improve your score. Remember that there are three main credit reporting agencies, and your credit repair company will need to go through this process with each one of them. Under pay per deletion/dispute, your company will charge you for the items they dispute or are able to get removed.

When pay per deletion/dispute is a good idea.
Paying just for deleted items sounds fair and seems like a bargain. It is a good deal sometimes, but only under certain circumstances. If you only have a few items to remove, or deleting just a few things will greatly improve your credit score, then using it is advantageous. For instance, say the credit repair company charges $15 per repair, and you only have three items. $15 x 3 x 3 (three agencies) = $135. If other agencies charge a flat fee of $100 per month and this process takes more than a month, you are saving money with pay per deletion/dispute.

When to do a flat fee
Now suppose you had 10 charges you needed to dispute. Your bill just grew to $450! As you can see, the more charges in dispute or the more complicated your case, the better it is to go with a flat fee arrangement.

What else you should know
Some credit repair firms offer both options and will recommend the one that makes the most sense for you. If they don’t, interview several agencies with each pricing scheme so you have a good idea of typical prices, and so you have plenty of options. Remember to do your math to determine the best deal.