Credit scores are more important than ever. With poor credit it can be difficult to get a loan when you need one. Furthermore, people with poor credit scores pay much higher interest rates when buying cars and homes. If you have a a below average or “sub-prime” credit score you could end up paying double or triple the cost for purchases because of the high interest rates. Credit scores are used for more than loan these days. Employers, car insurance companies, and landlords all commonly check credit scores. Having bad credit could cost you a new job or force you to pay higher insurance rates even if you don’t need to rely on credit for purchases.
Credit repair companies exist to help people improve their credit scores but unfortunately they can’t help everyone. Credit repair is very beneficial to those people who have blemishes on their credit reports related to late payments, missed payments, defaulted loans, civil judgments, etc. Under Federal Law consumers have the right to challenge information on their credit report. If the creditor doesn’t provide proof that the debt is legitimate the credit bureaus are required to remove the information. It isn’t just people who have trouble paying their bills who have negative information on their credit reports. According to the FTC 23% of Americans have inaccurate information on their credit reports. Some of the inaccurate information is from identity theft, but sometimes one of the three credit bureaus makes a mistake. You can challenge items on your credit reports yourself, but it is a long and tedious process involving regularly re-checking your credit. For those people who need information challenged on their credit reports, credit repair companies make the process easy by doing all the work for you. The credit repair companies challenge negative information and unauthorized inquires to your credit report. They handle everything for you.
Some credit issues can’t be repaired
The following groups of people can’t be helped by credit repair companies. Those who have no credit. Those with “insufficient credit history” (little history of loan re-payment) but otherwise perfect credit history. Those who have no negative information on their credit reports. Those who have lower credit scores solely because of high balances on existing accounts. It is a good idea to check your credit report yourself before hiring a credit repair company so that you can make sure they can help you.
The credit repair company with the best reputation in the industry is Lexington Law. They are a law firm which specializes in credit repair. They have affordable plans to help those get back on track. Lexington Law has helped a number of people I know personally, evening boosting a friends credit score over 120 points.