Credit Repair Blog and Resources

Guest Post by Steven Millstein If you're going to care about one number in life, it should be your credit score. Is this number not as high as you would like it to be? It's not too late. You can take steps to improve your credit.One of the most common ways to do this is by hiring a credit repair company. Some people have concerns about using these kinds of services. When looking for the right company, they don’t know where to start. And many are rightfully worried about getting ripped off.When hiring credit repair services, you must do everything you can to ensure the company is legit. This will prevent you from wasting money and making your score even lower. Here are our best tips for finding a reputable repair company and avoiding credit repair scams. Why is my credit score so important? Your credit score is a crucial part of your financial well-being. It plays a big role in whether you qualify for a loan, how much interest you have to pay, etc. It can even determine whether you are eligible to buy a house.  Why hire a credit repair company? If your score is low, you should take action to fix it.Your score can be low for a variety of reasons. Some of them may be your fault. If you make late payments or get too close to your credit limit, for instance, your score could drop. In this case, you will have to improve your financial habits. Your score may also drop because of factors beyond your control. Credit bureaus make mistakes when creating reports. They may mix you up with someone else with a similar name, list duplicated accounts, etc. Credit repair companies will catch these errors and report them to the bureaus. Once the bureaus correct these errors, your score should improve.  Can I repair my credit on my own? Some people choose to repair their credit on their own. They request free reports from the three major credit bureaus (TransUnion, Experian, and Equifax). Then, the individual goes through these reports. They notice any errors and report them to the bureaus on their own.  Under federal law, you can dispute information that’s on your credit reports for free, and the credit bureaus have online systems you can use. However, it can still take a lot of effort. You have to put in the time to research credit laws and go through your reports. You also have to properly communicate with the bureaus to ensure they address the errors. Credit repair companies don’t get any special access or privileges when it comes to disputing. However, credit repair professionals may have more experience identifying questionable information in credit reports and understand the details of the laws that govern credit reporting. This is why many people decide to hire a credit repair company. In the long run, it can save you time and money.  What should I look for?  So, what should you look for when hiring a credit repair company? Consider the following factors: Free consultations — Free consultations are a great way to get a feel for the company. Professionals will go over your report, informing you of what they can and can’t do. They will explain your options and help you determine the best course of action.  Reputation — It’s good to know the reputation of the credit repair company you’re considering. If others have had success with its services, it may be a good option for you. Check the reputation of the company by doing the following: Scour online reviews. When people have a bad experience, they’re bound to complain about it online. Ensure the company has plenty of good, legit ratings before hiring it. Consult guides. Check out this guide that provides reviews of genuine services. Cross-referencing guides will help you feel confident in your decision. Look at the Consumer Financial Protection Bureau. This organization has a Consumer Complaint Database that you can use to see if consumers have consistent problems with a company.  Certifications and licenses — In 1996, the federal government passed the Credit Repair Organizations Act. This law regulates how credit repair companies interact with clients, but doesn't require a federal certification or license to start a business. However, many states require credit repair organizations (CRO) to register with the state and hold a CRO bond.You could see if a company is registered in your state, although not all states require registration. You could also check if the company is part of a professional association, such as the National Association of Credit Services Organizations (NACSO). Open communication — Do the professionals on your case practice open communication? Do they inform you of what they’re doing, provide constant updates, etc.? What should I watch out for? Perhaps even more helpful than knowing what to look for? Knowing what to watch out for. Stay far, far away if you spot any of these major red flags:  Asking for payment upfront — Credit repair companies, by law, cannot demand payment upfront. They must complete their services before collecting your money.  Neglecting to make a contract —The law says that companies must have a contract with you. In the contract, they should lay out the exact services they will complete, a transparent cancellation policy, etc.  Guaranteeing results — Quick fixes are tempting. But, the reality is that no one can guarantee that they will fix your credit. If the company promises certain results in a certain time frame, be wary.   Promising to fix mistakes you made — Agencies can’t get credit bureaus to remove completely accurate negative information from your report. One that says otherwise could be running a scam.  Asking you to be dishonest — Professionals should never ask you to lie and claim something is inaccurate, assume a parallel identity, or sign up for a new tax identification number. These are underhanded tactics that won’t work and could leave you tangled up in a scam.  Ignoring your questions —As a consumer worried about your credit, you should feel free to ask questions. Avoid companies that brush aside your concerns or don’t inform you of your legal rights.  Think you’ve come across a scam? Have you come across a credit repair scam? Start by reporting it to an organization like the Federal Trade Commission, Consumer Financial Protection Bureau, or your state’s attorney general. If you were affected by illegitimate services, you can take legal action. Victims can sue for losses, fees, and even punitive damages. If the company swindled other people, you may be able to pursue a class-action lawsuit.  The bottom line With all of the scams and ineffective services out there, finding the right credit repair company can be challenging. Do your research before choosing. You’ll be glad you did while others are throwing their money away at conniving, ineffective companies.  Steven Millstein is a recognized credit expert and is the editor of CreditRepairExpert which is an online resource dedicated to all things credit. Steven has been featured in leading publications including Newsday, Yahoo Finance, MSN, NBC, and many others.

Lexington Law has provided credit repair services for quite some time. You've probably seen their brand represented on social media and various websites when you browse online. So, how do you know if they can help you repair your credit? Simple. You read reviews. The general public is typically cautious when it comes to places that provide credit repair services. And they should be. Several credit repair services are on record as either operating under illegal terms and/or not providing legitimate services as well as results. Even though credit repair services like Lexington Law continue to prove service legitimacy on websites and through brand representation, some people are still skeptical of credit repair services. Reading reviews can either make or break your decision about credit repair. If you read reviews of a credit repair service on an unreliable review site, you probably won't be reading the truth from real customers. It's important to make sure the review site you are using is providing real, honest customer reviews. If you are curious about what real customers have to say about Lexington Law credit repair services, here are a few reviews that verified customers have left on BestCompany.com. These customers were not bribed, manipulated, or provided compensation for their reviews. Nikita — 5 out of 5 stars: "I have been a member of Lexington Law since May 2013. And I must say, they have displayed being #1 in class, in my opinion. I appreciate the time and effort they provide getting your credit repaired and back on track. Very professional and highly trained and skilled people who are great in credit restoring and rebuilding." Tiwana — 5 out of 5 stars: "I am impressed by what this company has done so far, My credit was at 400 with 66 collections. 46 items have been removed and my score is 571. I still have a ways to go but a huge improvement. I have noticed a plateau the last 2 months, but I'm hoping things pick up again soon. Great company." Chris — 3 out of 5 stars: "Just to state I am a real paying customer of Lexington Law. I have been a customer now for one month. My credit took a dive after a divorce and a bad car accident all within months from each other in 2016. After everything was said and done, I had a 510. Trying really hard on my own, it took forever to see anything. Within the first month of being a customer, they have gotten 3 items removed from collections. Hoping to see what happens in the next couple months. Hard work from me, and help from them I now have a 651!" Shean — 5 out of 5 stars: "I used Lexington Law in the past and was able to purchase a new car. Well, life happens and I reached out to them again in the hopes of purchasing a home. They haven't disappointed. The experience and knowledge this company has at getting your credit on track is amazing. I have referred several of my friends and family to use Lexington Law Firm." Linda — 5 out of 5 stars: "Lexington Law is outstanding. Definitely are improving our credit score and removing things we didn't even know was on it! I would recommend them to anyone trying to raise their credit score! The best part is being able to see what is on your credit report anytime you want and working with someone to dispute it. It has helped us in so many ways. It is a little expensive, but it works to your advantage in the end." Teri — 5 out of 5 stars: "I've been very happy with them. I told them I could not afford what they wanted for a monthly fee and she kept lowering it until I could, it would just take longer, and that was explained in detail to me. I was ok with that. Nobody can make you sign up for anything you don't want to... Just remember that! My credit score increased and my husband saw what they did for me and now he wants me to get him signed up." Carolyn — 1 out of 5 stars: "I used this company and paid $119.00 a month, they did remove some items, but they all came back on my credit when I was no longer with them. Also, they removed from one credit report at a time even if the same info is on all three. But I guess it does not matter if the information is not staying off after being removed. Now to add insult, my score did not increase. I should have been refunded, but I was able to cancel." Kiyanna — 5 out of 5 stars: "I had Lexington Law for about 3 years. A lot of negative items have been removed, even 120+ late payments (they saved my life with that one). I do think they spread out the time in which they send correspondence to challenge negative items, but it is a business and they still need to make money. $99.99/ month is a fair price for me. I have been patient and very happy with my outcome. I had no issues with billing; it is a pretty straightforward process." Robert — 5 out of 5 stars: "So far so good. Just called them today but they seemed very knowledgeable and spent a lot of time with me on the phone answering all of my questions. Seems affordable and the staff is very kind and understanding." Lexington Law offers top-ranked credit repair services. Click below to learn more about Lexington Law and to read additional Lexington Law customer reviews. Learn More

The credit repair industry faces many myths and misconceptions that result from illegal practices and unrealistic credit repair time frames. Over time, these myths have significantly tainted the credit repair industry's reputation, leaving many people wary of using credit repair services. Although there are, in fact, some credit repair companies that prove to be scam-driven, reliable companies in the industry still exist and strive to defy the myths. Potential customers looking to choose a professional credit repair service should first be aware of popular credit repair myths. Myth #1: Credit repair services are illegal This is false. First, legitimate credit repair companies, especially those that are well-known, wouldn't be able to stay in business if they were openly performing illegal actions. Second, if you understand the credit repair process that legitimate companies follow, then you can see that it is, in fact, legal. For example, reliable credit repair companies will take a look at your credit report and will work on disputing items that have caused your score to drop. The process can even be legally done yourself; however, it may prove more efficient to use a professional service. It's important to keep in mind before choosing a service that good credit repair companies will provide full disclosure. Myth #2: You get the same results if you do it yourself Although this is a popular belief, it is more often than not just a myth. Individuals and others who are working to compete against larger credit repair companies and services use the popularity of this myth to their advantage. Credit repair methods can be done by yourself; however, getting the help of a credit repair company can help you raise your score more efficiently. What you save in money, you lose in time and energy if you choose to repair your credit yourself. The best credit repair companies are designed to do what you can do on your own, but they require significantly less time, energy, and risk. Basically, you have nothing to lose if you choose a company with a money-back guarantee policy. Myth #3: Credit repair companies can guarantee fast results Some credit repair processes are quicker than others; however, true credit repair typically takes time, even with the help of a credit repair company. Companies that make time-specific promises are usually companies that are either inexperienced or scam-based, especially if they don't offer any type of refund policy. No credit repair company can give a 100 percent guarantee of raising your credit score in a specific amount of time. Myth #4: Hiring professionals means your score will raise The credit repair industry, although a major time and energy saver, cannot fully ensure that your credit score will raise. The same goes if you try to repair your credit on your own. Credit repair comes with some degree of the unknown. A credit repair company can dispute errors and other information that can raise your score, but there is no guarantee that your score will go up with every dispute. Thus, there is no way a company, service, or individual can promise you that your score will raise if you hire them. What you can do with this information Knowing the truth behind these myths can give you a better understanding of how the credit repair industry and its services can help you accomplish your credit score goals. Doing personal research, using online resources like Best Company, and knowing how to avoid scam-based companies can assist you in choosing the right credit repair company for your needs.  

As many know, having good credit is essential in today's world. With good credit comes several opportunities, from purchasing a home to obtaining amazing credit card rewards. Although credit is important in the United States, some people still have a subpar credit score, which can make life a lot more difficult. For instance, people with bad credit could be denied loans, have a buildup of debt, and may even lose out on certain job opportunities. Fortunately, there are options for those who struggle with bad credit. Multiple reliable credit repair companies offer assistance with repairing poor credit and give individuals the ability to reap the benefits of good credit.  Not sure if credit repair is right for you? Take the quiz below to find out:

The holidays are upon us once again, and for many of us, 'tis the season for a bit of indulgence. Both at the dinner table and the cash register, the holidays can mean overdoing it a little bit. Like those extra calories we’ll have to work off in the gym, we may have some spending missteps to attend to as well. No one wants to start the new year with a few unwanted pounds, and no one wants to start the new year with unintended credit problems.   As we know, the holidays are a time for giving and receiving gifts—and shopping! In fact, according to the National Retail Federation, up to 30 percent of annual sales take place during the holidays. The malls this time of year can be downright frenzied, leading to issues like overspending and theft.   With so much retail activity now taking place online, that theft can turn to identity theft, which can have a profound negative impact on your life and finances.   The best answer to avoiding holiday spending mistakes is prevention. Before the holidays, follow these steps for financial safety:  Set a budget for what you intend to spend, and ensure that budget is reasonable for your current financial situation. Be careful sharing your personal information. Avoid opening up any new accounts going into the holidays. New accounts and the additional available credit can increase the temptation to overspend. Opening new accounts can also have a negative impact on your credit score. Watch out for old-fashioned theft of your purse or wallet. It’s a bit old school compared to elaborate, online phishing schemes from some foreign hacker, but it’s one that unfortunately never goes out of fashion. If you’ve done all you can to prevent a holiday mishap, and something still happens, then what?   First, contact the creditors directly for the affected accounts. They’ll close that account and open a new one for you, as well as work with you to remove fraudulent activity.   Next, pull your credit reports and ensure there has been no damage there. If you haven’t pulled your credit reports in the last 12 months, you can actually get them for free. The Annualcreditreport.com site is set up by the three major credit bureaus: Equifax, Experian and TransUnion. Make sure you get a report from each bureau because the information can vary among the three.   You'll want to look for the following: New accounts opened without your knowledge. Balances on accounts that seem unreasonably high. Changes to your personal information. While you're looking over your credit reports, look for any other errors from the past. This is a great time to catch those too and address them. Errors on your credit report will likely affect your credit score and negatively impact your ability to get credit.   What do you do if you find errors on your credit report? You can either enter the disputes with the three credit agencies yourself, or use a professional credit repair firm. A major advantage of using a good credit repair firm is that they can often expedite the process of getting errors removed from your credit reports. They know how to communicate with the credit agencies and have a proven, systematic approach for working through the dispute process.   A reputable credit repair firm can advise you about what negative items can most readily be removed from your reports and which might be more intractable. The ability of a credit repair firm to help improve your credit report will vary quite a bit based on the quality of firm. Best Company is an excellent resource for researching credit repair agencies.   The better agencies will be able to help with the following issues on your credit report: Late payments Charge offs Foreclosures Judgments Repossessions Personal identification changed or corrected Closed accounts Bankruptcies Negative settlements Liens Collection Whether you do it yourself or use a professional service, it’s important to protect your good credit, especially during the holidays!  

Believe it or not, there is one number that can control a great deal of what you can and can't buy. It's not the number in your bank account; it's your credit score. Your credit score is a number that rates you based on your credit habits. The most common type of credit score is the FICO score, which is a number ranging from 300 to 850. To create your FICO score, an algorithm measures your credit habits based on your payment history, amounts owed, type of credit, duration of account, and frequency of credit applications. There's a major problem, though. A study by the Federal Trade Commission has shown that five percent of consumers has an error on one of their credit report that will create less favorable loan terms. That means of the 242 million adults living in the United States, nearly 12 million may have an inaccuracy on a credit report. This is more than the entire population of Sweden. Concerning? Absolutely. Consumers can potentially be charged thousands of dollars through an error on their credit report, and this happens more often than you think. This doesn't mean that thousands of dollars are suddenly going to disappear from your bank account; but most of that money is lost due to the charge of substantial interest rates and loan terms. You see, because your credit score reflects your credit habits, your credit score will affect what loans you can take out, what apartments you can rent, what kind of insurance you can afford, what employers will hire you, and so on. The money you could potentially lose due to tall interest rates and long loan terms could add up to thousands over time. What Credit Repair Does So how do you dispute unfair errors on your credit report? That's what credit repair companies are for. Credit repair companies exist for the sole purpose of disputing unfair and untruthful claims on credit reports. They usually consist of a team of credit experts that go to battle for you against the three major credit bureaus (Experian, Equifax, and TransUnion) and charge a monthly retainer for their services. Since it can be hard to know if you've reached the point of needing a credit repair company, The Balance has put together a useful list to explain a few signs: You've been denied for credit Your electricity is in someone else's name Debt collectors are calling you You can't find anyone to co-sign your loans Your credit report is keeping you from getting a job Landlords won't rent to you You're afraid to check your own credit report Your credit score is low (under 650) Your interest rates keep going up Card issuers are closing your credit cards Buyer Beware If you need credit repair, be careful. You've probably seen ads on TV and in your social media feed urging you to call immediately under the guise of "fixing your credit 100% guaranteed" or "removing bankruptcies, liens, and bad loans from your file forever." Also look to see if a company pressures you to pay upfront fees, promises to remove negative info from your credit report, won't explain your rights to you, or tells you not to contact credit reporting companies. A good rule of thumb is if it sounds too good to be true, it probably is. Though some of these phony businesses exist, there are a handful of reputable credit repair companies that stand at the ready to help you. If a few of the points above apply to you, it might be time to call a reputable credit repair company. Here's the breakdown of the process: Analysis. Credit repair companies will evaluate your credit score by pulling your credit reports from the three major credit bureaus: TransUnion, Equifax, and Experian. When a credit repair professional acquires your credit reports, they can find inaccurate negative information that has been recorded by one of the credit bureaus. Credit repair pros pull credit reports from all three major bureaus because each bureau has its own "data furnishers" that collect credit information. Legal Action. At this point, your credit repair expert will be able to analyze your credit reports with you and find inaccurate information that may be hurting your score. When that's been analyzed, the expert can take legal action against the credit bureaus for erroneous charges placed on your credit report. For this reason, it's best if a credit repair company has legal staff such as attorneys and paralegals on board. Sometimes these erroneous charges can be as serious as violations of the Fair Debt Collection Practices Act (FDCPA) or the Fair Credit Reporting Act (FCRA). If this is the case, a customer may be entitled to compensation of $1,000. Credit Bureau Investigation. When legal action is taken against a credit bureau, the credit bureau is charged to investigate the problem. Each charge could take between 30 and 45 days to resolve. For this reason, most credit repair companies charge a monthly retainer for their services, which can range anywhere from $50 and $150. Resolution. This takes time. Some consumers will see improvements on their score in a matter of months, but to see their credit fully restored, the process could take years. Again, credit repair experts can do much of what consumers can't when it comes to pressing legal action for erroneous charges, but it's up to the consumer to practice smart spending habits such as quickly making payments and not spending more than one-third of a credit card's max limits. A list of reputable credit repair companies, ranked from best to worst, can be found at BestCompany.com.