I don’t recommend using credit repair companies or debt settlement companies. Both are expensive, offer little and can get you in a mess of trouble. I suggest you check the Federal Trade Commission’s website to learn more about your rights and protections when dealing with a credit repair company.
The money you are spending for credit repair would be better used to pay off some of your old debt. Many services provided by the credit repair company are things you could have done yourself for free.
For example, collections can be seen to disappear and then reappear on your credit report. Odds are they were removed because the credit repair company disputed the item with the credit bureaus. Filing a dispute with the credit bureaus is simple and can be done by you for no charge. Once an item is disputed, the company that reported the item must provide proof that the debt is valid and belongs to the person on whose report it appears. Once they provide the data, the item reappears on your credit report. If a collector doesn’t have the proper documentation to validate a debt, the credit bureau is required to remove the item permanently. That you can do yourself.
Repairing damaged credit does not happen quickly. Your credit report is an accurate history of how you managed your credit accounts. If you have been late with payments, had accounts charged off, had a judgment issued or filed for bankruptcy, the stain will show up on your credit report for seven to 10 years, depending on the issue. But the good news is most people who view your credit report will give much more weight to how you have managed your credit in the last two years. So the positive information you are adding with your new credit accounts will help improve your credit over time. As long as you pay all your current accounts on time and as agreed, your credit will slowly improve.