Credit Repair is More Important Than Ever

By: Stuart Hunter
More than ever before, credit repair is becoming a necessity for people looking to get into a home or make other purchases on credit. Because of the current credit crunch, lenders are being forced into lending only to the most qualified recipients meaning that in some cases, a 700 credit score simply isn't good enough.

As home prices continue to fall, those with excellent credit are being presented with the opportunity to take advantage of home bargains. But unlike previous years where people with sub-prime credit scores could still get into homes, albeit at a higher interest rate or using a non-conventional mortgage, people with low or in some cases average credit scores are being left out.

Looking for a way to more quickly raise their credit score than simply waiting for it to improve on its own, many of these people are taking advantage of the many credit repair resources and services available to them. By actively working to remove bad credit from their credit reports while also effectively managing the addition and reporting of good credit, these people are finding it possible to repair their credit reports and qualify for new loans in a matter of months instead of years.

Repairing your credit is something you can do on your own at very little monetary cost. It will, however, likely take quite a bit of time to learn the best methods for effectively working to improve your credit. For someone new to the credit repair game, you may be able to see positive results in little over a month by researching best practice for credit bureau disputes and putting those practices into effect. Realizing more dramatic results may then require significantly more time researching, frequenting credit repair forums, and working the system.

For those people who do not have the time or desire to learn how to repair their credit themselves, there are a number of reputable credit repair companies who will, for a fee, manage the process for you. These companies typically provide credit bureau disputes, creditor interventions, and credit score coaching.

As is the case with any services industry, and especially so in one that deals with something as complicated as the credit reporting system, there are those who look to take advantage of people. These credit repair scams can usually be identified by traits such as accepting large upfront payments, not informing you of your right to repair your credit on your own, or guaranteeing to give you a great credit score. The "if it sounds to good to be true, it is" adage is a good starting point when looking at a credit repair offer, but for a more detailed description of what to look for in a credit repair scam, the Credit Repair Organizations Act is a good resource as it is the federal law regulating all credit repair organizations.

Whether you choose to work on repairing your own credit, to enlist the help of a credit repair company, or opt for a blended approach where you start with the easy stuff and then use a professional to do the heavy lifting, credit repair may be the tool you need to take full advantage of the credit crisis.

For 17 years, Lexington Law's credit repair services have been helping people legally dispute the questionable negative items on their credit reports. As the Trusted Leaders in Credit Repair, Lexington Law has helped clients remove millions of negative items from their credit reports.