Credit Repair - I have a question about credit repair companies?

I have a question about credit repair companies?

I know that credit repair companies are real and they can work. What I want to know is how do I know a good credit repair company from a scam? I have heard a lot of bad things about Lexington Law and I thought they were a legit company. I won't be using them but I really need to find a service that is real and won't take me for all my money and run. ( Please don't answer by saying not to use a credit repair company. I know that I can do it myself but I don't have the time and I don't want to put the effort into it. I am willing to pay to have the service performed for me.) Thank you for any help you can give me. bdancer: I specifically asked for people NOT to give me answers such as yours. I appreciate your candor and your point of view, but I don't share it. I want constructive answers not answers from people looking just to get points. Please, if someone asks you not to give in to the hype and hysteria when answering their question, try to respect that request in the future.

Public Comments

If you want honest and forward answers about credit repair, check out this site: http:www.karunaservices.com You won't find any better answers about credit repair than there. I have researched this topic myself and when it came down to it, I went with these guys because of the 'no b.s.' approach they use. You should check them out. But if you wait, I am very confident that you are going to receive a VERY long answer from a certain proponent of credit repair who answers very frequently on YA. I know you will receive a good education about credit repair at that site. Check it out. Al
I have personally used creditattorney.com. I began using them after I went through a divorce situation and my ex husband failed to pay our joint debts that he assumed liability for in the divorce decree. Items on my credit report ranged from write offs for lease end balance owed on his vehicle, home improvement loan that we got sued for and they placed a judgment on my credit, late mortgages severely late payments, it goes on and on. Since I started using credit attorney, they have managed to remove just about everything on all three credit bureau reports. All I had to do was send them new reports as the bureaus forwarded the updated ones to me. I'm now able to buy a home again, finance a car, and be approved for loans and credit card offers where I had to have co-signers before. I recommend creditattorney.com. I pay a flat monthly fee and that's it. $29 every month. It took about 2 years to get enough repaired before I could get my own credit lines without paying crazy interest rates or needing a co-signer. It may have taken less time if I was more diligent at forwarding the new reports I got monthly.
The problem is that MOST credit repair companies are scams and they don't work. There is no special form letter or magic trick to fix your credit. Legitimate derogatory items stay on your credit file for 7-1/2 years from the date of first deficiency. Sending dispute letters for everything (the prime credit repair technique) in hopes that creditors will fail to respond, only work temporarily. The item comes right back when the creditor next updates. Also, using this technique will get you tagged by the credit bureaus and you will have trouble getting any future errors fixed. If you have a bunch of derogatory items that need settlement negotiations, try contacting Consumer Credit Counseling Service. Check here for one in your area: http://www.nfcc.org/. They may be able to help you with that.
Here is an article that I have written that may help you in making your decision about which company to use. The TRUTH about Credit Repair: Aren't They All Scams or Illegal? This topic is a really hot one right now. People are falling victim to so many scam artists out there who are taking people's money and offering false hope. What is credit restoration? It is a means by which one can have negative information removed from one's credit file by using the more than 300 different laws contained in the Fair Credit Reporting Act (FCRA). If you know how to use and manipulate those laws, you can successfully remove any information from your credit report, even if it is legitimate. This is possible because of many factors, but chief amongst these is that there is no law in any jurisdiction in the United States which REQUIRES information about you be reported for seven minutes, much less seven years. The truth is that anyone can write to the credit bureaus to have negative information removed from their file. But, like fixing your car's engine, it is usually better to have a professional do it for you. If you don't know what you are doing, you can end up doing more harm than good. That is easier said than done. Currently in the United States, there are ONLY A FEW legitimate credit restoration companies. Each has their strengths and their flaws, but they are professionals with many years of experience backing them up. Unfortunately, this cannot be said about most people in the country who are performing credit repair. What has happened in many cases that I have investigated is a person bought a do-it-yourself kit over the internet and had some success with their own credit file. Problem is, now they think they can repair anyone's credit. This is what worries me most. An untrained, unlicensed, un-bonded and uninsured person handling other people's credit files. There is absolutely NO accountability if, or rather, when this person screws things up. It is up to you to do the research. You should ask a lot of questions and perform your due dilligence. If you can't do the bare minimum to protect yourself, then don't come crying to me if you are taken for all of your money. But, to help you determine the scams from the legits, I have compiled 10 tips on how to tell the difference: 1: If they advertise that they will repair your credit in anything less than 18 months, you are not dealing with a legal company. The LAW requires that any credit restoration agency cannot advertise or represent that they can restore or repair your credit in less than 18 months. (Remember this number, it is going to come up again later.) 2: Check on how long the company has been in business. If they have been around for more than 10 years, you are probably dealing with a reputable company. 3: Do your due dilligence. Check with the BBB. The BBB will provide an unbiased report of how many complaints have been filed against the company in the previous three years. There are two things that you want to consider here. First, if there are more than a dozen complaints over the previous three year period, then this company has serious issues and you should be concerned. Also, if the BBB has no file at all on the business, just walk away from the business. Anyone who is hiding from the BBB should be looked upon with suspicion. 4: Ask for pricing when talking to one of their reps. If they hem and haw about what they charge, or say that it depends on how much they have to remove from your report, they are hiding something from you. A good rule of thumb, if the rep is unwilling to answer any question of yours up front and with honesty, you are not dealing with a legitimate company. This does not mean that if the rep states that they will answer the question in a moment, that they are hiding something. It just means that they are getting there and just need to lay a little groundwork first. Remember, reps are all salespersons. They are there to sell you their service. This is good, believe it or not. This encourages competition in the business and keeps costs down. (Which reminds me: DON'T PAY MORE THAN $1200 PER PERSON FOR THE SERVICE.) 5: Ask if the company is licensed, bonded and insurred. Ask for proof. If they will not provide you with their bond information, (which they MUST have in order to obtain their license and insurance) this should raise alarm bells. 6: Ask for examples of successes the company has had. A legitimate company will have copies of investigation results (with personal information blacked out of course) that will show you how successful they can be. 7: How long are they going to work for you? Yes, that's right, remember that these companies work FOR you. If they are just going to maintain a business relationship with you for the length of time it takes to repair your credit, beware. What often happens in these cases is that after the company has cleared negative information from your credit report they sever their relationship with you and a couple of months later the information returns to your credit report. Now what are you going to do? Your options are to leave the negative information and suffer for 7-10 years or hire someone, again, to remove the information, again. A reputable company will stay with you for the FULL 18 months (I told you this number would come up again). This allows them to continuously monitor your credit reports and remove any negative information that may re-insert itself after the initial sanitizing. 8: What other services do they offer? If they are a legitimate company, they will have rescources that will help you to re-establish yourself in the financial world. Things like the ability to help obtain a debit card even if you can't open a checking or savings account. (Yes, believe it or not, it can be done!) Can you call their credit advisors any time for advice? Is legal representation available if you have to go to court against the credit reporting agencies? ASK! If the company is letgitimate, they will have a team of lawyers that will handle these kinds of legal matters for the duration of your contract. 9: Does their contract advise you of your rights? If not, why? Because they don't know the laws! And if they don't know the laws that are designed to protect you, how can you expect them to know the complexities of the Fair Credit Reporting Act which has over 300 laws? 10: Is there a money back guarantee? In this business refunds are usually prorated. In other words, if you have 50 negative things on your reports and they can only have 30 removed, you are refunded 40% of your money since they were able to get 60% of the information removed. If there is no money back offer, run away! A company that has faith in their services will offer to refund the money if they can't do the work. I hope this information helps people out there who are confused about credit restoration programs. If you have any further questions about this or any other credit issues, please feel free to contact me at nebula7693@yahoo.com.
Well regardless of what you want to hear, the TRUTH is that working on it yourself will be the best and cheapest way to clean up your credit report. But of course you don't want that answer because it would require you to display financial maturity, something you weren't displaying when you got into this mess. **Edit** "bdancer: I specifically asked for people NOT to give me answers such as yours. I appreciate your candor and your point of view, but I don't share it. I want constructive answers not answers from people looking just to get points. Please, if someone asks you not to give in to the hype and hysteria when answering their question, try to respect that request in the future." bdancer's answer is very constructive and not a person just trying to get points. If you ask a question on this website, unfortunately you cannot control who answers, despite what you request.