You may be denied low-interest loans, lines of credit, or even rent or insurance policies if you have bad credit. If you’re facing such a dilemma, you may consider using a credit repair service. But before you hire one, you should understand their business practices and how their services work. In most cases, hiring a credit repair company is a waste of money. Here are the reasons why.
Lexington Law: This company started in the early ’90s and has removed more than 10 million negative remarks from consumers’ credit reports. They are known for assisting victims of identity theft with credit repair. Lexington Law offers three service tiers and charges slightly higher than most repair companies. They have been in business for over ten years and offer a 90-day money-back guarantee. And they provide a free consultation.
Time: Fixing credit is time-consuming and complicated. Many people are working two or more jobs or living in single-parent households. Having a busy schedule shouldn’t mean you should have poor credit.
Legitimate Service: While there are honest credit repair services, the credit repair industry is notorious for scams. The FTC warns consumers to be wary of any service that guarantees the complete removal of inaccurate information or promises to establish a new identity. Companies should also provide a firm estimate of turnaround time and costs before signing on with their service. And if you’re not comfortable with the results of their service, it’s better to partner with a legitimate credit repair service.
Time Frame: Credit repair services will improve your credit score, but it takes time. The time it takes for your credit to be restored will depend on the type of errors on your report and the methods you use to dispute them. It’s important to remember that credit repair isn’t a one-time thing, and it’s essential to maintain good standing to ensure you can continue getting loans and credit cards.
Experience: A credit repair company will be able to do the most for you. A good credit repair service will take the time to pull your credit reports from all three bureaus and review them. In a free consultation, credit repair specialists will look for damaging information on your message contributing to your bad score. This includes duplicate accounts and expired negative items. A good credit repair company will have a staff of specialists that can help you dispute these negative items.
The initial setup fee is usually used to set up your account. They may also gather your personal information to create a strategic plan that will work best for your particular credit situation. If the credit repair service you choose does not charge a setup fee, they may be a good choice. It would help if you considered the cost before you signed up for their services.