You’ve probably heard of credit repair scams: companies who promise dramatic results but want you to pay all the money up front, or who say they can remove legitimate items from your credit report. But what is it like to hire a credit repair company that actually has your best interests at heart?
Not all credit repair companies are scams, and there are situations when hiring a credit repair firm can yield great results well worth the cost. Here’s what you can expect from a legitimate credit repair company.
They Will Go Over Your Credit Report With You in Detail
A trustworthy credit repair company wants to help you improve your credit situation, but they won’t sugar coat anything. The first order of business is pulling all of your credit reports and going over them with a fine-toothed comb.
Your credit repair company should be upfront about items they can potentially fix in the short term, and which items they won’t have any control over. In addition to this, your credit repair company should give you the tools and advice you need to raise your credit score in the long term.
They Identify and Dispute Errors on Your Credit Report
An experienced credit repair company will have been helping people improve their credit for a long time. They know the ins-and-outs of credit laws and regulations, using their expertise to identify and dispute legitimate errors on your credit report. Over 40 million Americans have errors on their credit reports, and so there is a good chance that your report isn’t squeaky clean. However, a legitimate credit repair company will let you know which items they won’t be able to fix – the negative items that are indeed accurately reported.
They Work to Remove Details from Your Report that Can’t Be Verified
Every detail of your credit report must be verifiable, or the credit bureaus are required to remove them. A credit repair company can use this to your advantage, but it’s pretty rare when this tactic works. Don’t expect negative items to magically disappear just because you hired a credit repair company, but there is a small chance that there are some items on your report that can’t be verified (sometimes this happens when a creditor was bought or went out of business).
They Negotiate with Creditors to Achieve Terms of Repayment More Beneficial for You
Experienced credit repair companies (especially law firms like Lexington Law) can sometimes negotiate with a creditor on your behalf. They will use their expertise as leverage to achieve repayment terms that are more beneficial to you, but this only works if your creditor is willing to negotiate in return (many aren’t).
They Will Provide You With Regular Reports Detailing Their Progress
Credit repair isn’t a mysterious process, and you should never feel like you’re out of the loop. That’s why reputable credit repair companies will provide you with monthly reports that chart their actions and show any progress. If you’re not getting the results you want, you should be able to cancel without any hassles.
Avoiding Credit Repair Scams
The best way to avoid a credit repair scam is to always do your research. Reputable companies have usually been around a long time and are well respected in the business community. It’s a good idea to check the BBB (Better Business Bureau) and read online reviews from actual customers. Remember the age-old adage, “if it’s too good to be true, it probably is.”
Learn more so you can make an informed decision regarding your credit; read our full review of Lexington Law.
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