The world of credit repair is often compared to that of a visit to the dentist - something that is necessary but not always enjoyed. Unfortunately, with minimal requirements to start a credit repair business, many companies have popped up providing this service. This phenomenon has led to an oversaturation of the market, similar to the prevalence of McDonald's restaurants on every street corner. Having been a part of the credit repair industry for 15 years and managing one of the largest companies in the nation, I understand the criticism that our industry receives, and much of it is valid.Bad credit has become an epidemic, and the current influx of credit repair companies is representative of the need for these services. However, as a consumer, it is essential to do your research and due diligence on each credit repair company to avoid falling prey to those who may take advantage of you.As a credit repair business owner, I have been fortunate enough to serve over 20,000 individuals, changing their lives. As a way of giving back to the community, I want to provide transparency and clarity for those looking to hire a credit repair company. I aim to equip consumers with the knowledge and tools they need to make informed decisions about their credit repair needs.
Table of Contents
How to Determine the Best Credit Repair Company in Lexington
Different Credit Repair Companies: Understanding the 3 Types in Lexington
The Credit Repair Process in Lexington
Only Credit Repair Cannot Solve Your Credit Issues
Free Credit Repair Services in Lexington
Advice on Choosing a Credit Repair Firm
How to Determine the Best Credit Repair Company in Lexington
If you're trying to find the best credit repair company, it's essential to take the necessary steps to research and evaluate the options available to you. While checking online reviews is a good place to start, it's important to keep in mind that they may not always be genuine. Instead, try the following:
Make a List
Create a list of credit repair companies in your area (Lexington) with a good Google rating. If you want to feel more secure with a company, consider searching for local options.
Check the Reputation
Only consider credit repair companies with a good reputation and check if they have a website that's been online for at least three years.
Make the Call
After narrowing down your list, contact each company and ask critical questions that will help you make an informed decision. Inquire about their business background, physical office location, free consultation, money-back guarantee, fee structure, and average process time.
By taking these steps, you'll be able to conduct a thorough evaluation and determine the best and most affordable credit repair company that suits your needs.
Different Credit Repair Companies: Understanding the 3 Types in Lexington
There are numerous credit repair and financial service companies operating in the United States, with over 1 million active companies. While you have the option to choose from a variety of companies, it can be challenging to differentiate between experienced and inexperienced companies. To help you understand credit repair, let's look at the three different types of credit repair companies you will find in Lexington.
Flat Fee Companies
Only about 5% of all companies operate on this model, which in the opinion of many, is the most effective way to get fast results and save money. Flat fee credit repair companies usually bill you for the accounts they dispute and charge a one-time fee for this service. They are faster in their services because they have an incentive to complete your work in the quickest time possible. To get started, the credit repair company will do a consultation by examining your credit reports and then give you a quote based on the accounts. This type of structure helps clients get pre-approved more quickly, making it an attractive option for many loan officers.
Monthly Fee Companies
Most credit repair companies charge monthly fees. However, this model may not be efficient because most companies hardly ever review your credit report. Monthly fees can add up over time, making it an expensive option. In addition, the credit repair company may take longer to complete your work to keep collecting fees from you.
Pay for Delete Companies
Fewer credit repair companies offer this model, which involves paying for results. This puts pressure on the credit repair company to work efficiently. While this model is attractive, you need to look carefully at the fee structure to avoid surprises. Companies may hook you by stating that you pay only for results but then charge you high prices per item removed.
Overall, I recommend a flat fee credit repair company, but it's important you do your research and calculations to make the best decision for yourself.
The Credit Repair Process in Lexington
When it comes to credit repair, there is no shortage of advice available online, but much of it is outdated or ineffective. As an experienced credit repair specialist based in Lexington with 15 years in the industry, I can tell you that the process is constantly evolving, and new regulations and legal changes can make it difficult to keep up. One thing that remains the same, however, is that credit reporting agencies are always trying to outsmart consumers and limit their ability to dispute negative accounts effectively. To succeed, it's crucial to stay up-to-date with the latest changes and adopt new and unique dispute tactics.
The Evolution of the Credit Repair Process
In 2015, "not mine disputes" became a popular way to force credit reporting agencies to delete negative accounts. However, when agencies began investigating, many accounts would reappear on credit reports. As a result, agencies have developed more refined processes, such as e-OSCAR, to filter out frivolous disputes. Without effective strategies, disputing inaccurate accounts can be challenging.
The New and Effective Credit Repair Process in Lexington
You have the legal right to contest any account on your credit report. Rather than only disputing errors, you should request that the data furnisher validate the account's accuracy with original signed documents or payment ledgers. If there is an error, use your evidence to request that the account be fixed or deleted.
What Documentation Should You Ask for?
The documentation required to authorize a new loan can vary depending on the lender and loan type. You can call a non-customer to inquire or search for information online. Soon, I'll post a blog with links to help you request the necessary documentation.
Only Credit Repair Cannot Solve Your Credit Issues
In terms of personal credit, your credit score is driven by your personal finance. It explains why millions of Americans are struggling with their credit ratings. Your credit score can be compared to the stock market as it fluctuates based on your personal financial situation. While credit repair is a useful tool for tackling derogatory accounts, it is not the ultimate answer to all credit issues.
Tune Up Your Personal Finance First
Boosting credit scores is achievable for everyone. However, the real challenge most people face is to maintain sustainable credit scores in recessions or job loss scenarios. The key to success is to have full control over personal finances, which most people do not have. Before opting for credit repair, paying off revolving credit and paying all bills on time should be your priority. Also, try not to use credit cards excessively. Keeping a small balance on the credit card is advisable to prevent account closure. Fixing your finances is the solution to achieving credit sustainability. By doing so, your credit score will follow suit, and you will experience fewer fluctuations in your credit score.
Breaking the Endless Cycle of Credit Repair
Credit repair can become an endless cycle wherein clients keep returning for more help. This happens when clients do not take their financial situation seriously and spend all their money on credit repair instead of paying down their balances. While fixing credit and managing finance simultaneously is possible, most people struggle due to limited financial resources. Therefore, it is crucial to focus on getting finances in line to fix credit issues permanently. This is valuable advice that every client should heed if they are serious about tackling their credit issues for good.
Free Credit Repair Services in Lexington
Are you wondering if it is possible to fix your credit for free? Well, the answer is yes, you can! By taking care of everything yourself, you can repair your credit without spending a dime other than the cost of stationary. If you are willing to put in the time and effort, you can follow the steps laid out in my blogs and repair your credit like a pro. However, if you lack the time or desire to do so, you may want to consider hiring a professional credit repair company. You are entitled to dispute your credit report anytime, but you have to put in the work. I recommend reading my blog post on repairing your credit like a pro if you are ready to commit 2-4 hours a month to building your credit score for free.
Leave a testimonial or review in Lexington
Sometimes, credit repair companies offer free credit repair services in exchange for testimonials and reviews. Even though it costs a bit to send out disputes, the heightened value received from a review is exponentially greater than the expense of offering credit repair service. In today's world, many new credit repair companies are willing to do the same as I once did. Simply search for "Credit Repair" Facebook groups, join them, and post a message like this one: "I'm searching for a new credit repair business owner to aid me with my credit issues in exchange for an impeccable 5-star review." While you may encounter some motivational challenges, you will have no difficulty finding someone to offer you a free credit repair service.
Advice on Choosing a Credit Repair Firm
To permanently fix your credit, it's crucial to find the right credit repair company. Though it requires extensive research, it ensures that your money and time are not wasted.
Alongside this, improving personal finances is equally significant since poor financial management is the root cause of most credit problems. Mending credit scores by ignoring spending and saving habits ultimately results in financial failure, resulting in wrong claims of scams and failure.
Credit repair indeed works, and it changes lives, as seen through twenty thousand of my clients. Nevertheless, it is a quick and long-lasting solution only when combined with good financial management. Start with you, take control of your finances, and do not lose hope.