“A good credit repair company will scrub questionable credit report items against other laws—like the Fair Credit Billing Act, which regulates original creditors; the Fair Debt Collection Practices Act, which oversees collection agencies; and others that address medical illness, military service, student status and other life events,” Padawer said.
If you are thinking of starting your own credit repair business, there are many factors to take into consideration before joining the growing industry of credit repair. With the economy rates as low as they are, the need for credit repair advisors and credit repair businesses are growing quickly. Begin by first researching all of the numerous state and federal laws in accordance to starting a credit repair business. Become acquainted with the CROA (Credit Repair Organizations Act), as well as your state’s legislation, licensing and bonding laws regarding credit repair business operation. Finally, educate yourself on all credit related topics that will help you succeed in the credit repair industry.
Credit restoration specialists have the experience and expertise to navigate even the most complicated credit situations. For example, a credit repair agency can help victims of identity theft remove derogatory marks on their credit reports that resulted from fraud. However, a legitimate credit repair company can’t remove accurate marks just because they are negative.
"I must say we are pleased thus far with the work that your company is doing in our behalf. I’ll admit that initially I was very skeptical about using your company. But you are proving me wrong in a very good way. Can’t wait to see the end results. Having many folks on the sideline looking to see what happens next with us. Thank you for your hard work!"
With what they charge, is Lexington Law effective at helping people improve their credit history? As you'd expect with such a large business, the reviews are mixed. Most credit repair services are criticized for not making noticeable improvements in less than two months, but that's to be expected. But, Lexington seems to have a higher-than-average number of people who say that they didn't get prompt responses from company reps, not just that their reports didn't improve quickly. On the other hand, we found numerous people saying that their credit scores improved dramatically as they stayed with the service, usually for six months on average.
Scoring models consider how much you owe and across how many different accounts. If you have debt across a large number of accounts, it may be beneficial to pay off some of the accounts, if you can. Paying down your debt is the goal of many who've accrued debt in the past, but even after you pay the balance down to zero, consider keeping that account open. Keeping paid-off accounts open can be a plus in your overall credit mix since they're aged accounts in good (paid-off) standing. You may also consider debt consolidation.
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