Best Credit Repair Companies in Lexington, KY

The need for credit repair in Lexington

The average credit score for a Kentucky resident is 680, making it the 34th highest state in the U.S. Lexington residents with scores in this range or lower see significant benefits from professional credit repair.

Many consumers in Lexington have errors or negative marks on their credit report. Some reports may even have fraudulent activity as a result of identity theft. An accredited, reputable credit repair company stops debt collectors and helps you remove credit reporting errors to increase your credit score.

An improved credit score helps you in a variety of ways, including:

• Lower interest rates
• Easier loan qualification
• Better credit checks for renting or employment
• Better car insurance rates
• Reduced security deposits

Types of credit repair services

Credit repair companies in Lexington cannot remove any items on your credit report that are accurate and factual. However, accredited credit repair companies work to remove any questionable items and negotiate with creditors on the remaining issues. Most credit consultants try either:

• Negotiation: Leveraging their experience working with creditors, a credit repair company negotiates to remove collections, late payments or other negative items from your credit report.
• Disputes:‌ If the credit repair company evaluates your report and finds that some items are inaccurate or fraudulent, they dispute them with the credit bureaus. The creditor then has to prove that the information is correct. If they’re unable to or simply don’t answer the call for proof, the item is removed from your report.

It takes credit repair companies in Lexington between three and six months to resolve everything on your credit report.

To sign up for a credit repair service, contact a provider in Lexington for an initial consultation. This step is usually free and confidential, allowing the credit specialist to compose a strategy for repairing your credit. Eventually, you’ll likely sign a limited power of attorney to allow them to send letters and negotiate on your behalf.

How much does credit repair cost?

Credit repair companies in Lexington might use any number of payment models to charge for their services. Some charge a monthly fee costing anywhere from $60 to $130, while others charge a flat fee as high as $750. Some may even charge based on how many negative marks they remove from your account, with prices averaging $10 to $50 per deletion.

In addition to these costs, there is usually a small setup or enrollment fee of less than $200 as well.

How to avoid credit repair scams

Unfortunately, there are scams that prey on people looking for credit help, so keep an eye out for some of the warning signs of a scam. Credit repair companies that require a steep upfront payment or make promises that are too good to be true may be trying to scam you.

Be wary of businesses that propose unscrupulous practices, such as disputing accurate credit items or advising you to get a new social security number. If you feel you may have been the target of a scam, file a consumer complaint with the Kentucky Attorney General.

Your credit repair company in Lexington will assign you a personal case manager or a team of credit representatives. It’s critical to feel that these staff members have your best interest in mind. A‌ reputable credit repair company also provides you with copies for your rights as a consumer, as well as a copy of any contract they ask you to sign.