Giving It A Try..
we recently refinanced our home, that was owner financed, with a subprime lender. They were able to get us financed, and the loan originator gave us the name of a "credit repair guy" that he used personally. He cost $299, and our originator had a very good experience with him. He had looked into Lexington, etc. in the past and were skeptical, but gave it a shot on this personal referral. We just did this a month ago, so nothing has really happened yet. We will post on the progress and his contact info if he does a good job.
Be careful of "credit repair companies" many are not that good and many have been termed by the FTC and SEC as scams.
Here are few things you should be aware of and should raise some red flags:
Want you to pay before any services are provided.
Do not tell you your legal rights and what you can do yourself.
Recommend that you not contact a credit bureau directly.
Suggest that you try to invent a "new" credit report by applying for Employer Identification Number to use instead of your Social Security Number (highly illegal and you will go to jail for doing it).
Advise you to dispute all information in your credit report or take any action that seems illegal, such as creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
By disputing everything on your report you will be flagged by the bureau as "frivolous" and once that happens results will be very difficult to get.
[addsig]
Although you are correct about some credit repair agencies (LADealer), your statements do not apply to all.
Credit repair agencies can provide a valuable service for people who do not have the time, knowledge or drive to clean up their reports themselves. Referrals are a great way to find reputable agencies. Credit repair agencies are governed by the FTC and are required to follow the Credit Repair Organizations Act. Make sure they are in compliance with this law. They are required to have you sign a contract in order to do business with you. You also have the right (and they have to tell you in writing), that you can legally back out of the contract within 3 days of signing it. They also must give you a statement from the government that explains that you can repair your own credit without the use of an agency.
One thing to keep in mind for the doubters. 1 out of every 4 credit reports has errors in it. That can mean denials, higher interest rates, embarrassment or worse. If you want to take the time to learn the laws and be persistent and follow up continually on the repair process, more power to you. You will be successful in your pursuit. But oftentimes (as in any business) it is better to outsource things that you do not specialize in to professionals and concentrate on your core businesses and strengths.
Also, always go for an agency that offers a money back guarantee for accounts that they cannot get removed.
Sincerely,
Mario Costanz
President
SmartServ Solutions