Credit Repair Services: They're Not All Just Scams

The credit repair world can be a scary place. With the number of news articles, television segments, and "expert" pieces warning of fraudulent credit repair services that get pushed out by well regarded media outlets, it can look like the only logical option is to avoid credit repair companies altogether - something the news outlets seem to advocate.

There are dozens of articles detailing how to keep yourself from becoming the victim of a credit repair scammer. Most itemize a list of red flags such as companies that charge hefty upfront fees, claim to help you create a new credit history, don't keep you informed of your rights, and generally make misleading or inaccurate statements. At this point, however, very few articles concede that there are credit repair companies who do not engage in the practices that typify a credit repair scam. In fact, some articles from premier news agencies such as CNN end by suggesting people "get legitimate help" from consumer credit counseling services.

Not only is this advice incomplete, but it is also 100 percent useless to people who truly could benefit from the assistance of a legal credit repair service. Credit counseling programs may be able to assist people who are struggling to pay off their debts, but it will do nothing to improve your credit rating. Some credit counseling programs may even make your credit score worse.

Unlike consumer credit counseling services that aim to bring your debts under control, credit repair services are designed to help you improve your credit score. They are not mutually exclusive services and in many cases, a person who has used a credit counseling service to help manage their debts becomes a great candidate for credit repair once they have completed the program.

Legal credit repair services like those provided by Lexington Law do have a purpose and it is a disservice to say otherwise. Hopefully as consumers and news columnists alike become more familiar with credit repair and the services credit repair organizations provide, we'll start seeing more of a balance between news stories warning of credit repair scams and news stories listing the qualities to look for in a legitimate credit repair service.