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Call it bad decisions I've made or stupidity, but I've got a pretty messed up credit score of 593 (TU). I found a credit building firm (Lexington Law) and I've signed up for a free trial to see if they could do anything to help me rebuild my credit. In their website, they've pulled out the 2 negative entries in my credit report and in order to 'dispute' them, I have to choose either

(a) Verify item

(b) Not mine

(c) Never late

(d) Ignore - no dispute

Now in my case, (d) would fit - it's my fault and my fault alone for taking on too much debt. But if I ignore it with no dispute, will Lexington still be able to remove the item from my report? Maybe like a goodwill letter? I'm really confused as to how this works. Any help would be greatly appreciated!

Thanks in advance folks.

5

No-one can improve your credit but yourself. If the bad items on your credit report are genuine - there's nothing much these firms can do for you, really, other than taking your money for telling you that.

Disputing valid bad points on the report might reset the clock for them and keep them even longer on your record.

4

I don't put much faith in these companies (while I have no experience with this one in particular) as they can't do more than you can do yourself. Questioning what's on your report may benefit you. If the bank or credit card doesn't respond in time the negative details will be removed. But they may very well re-report the data in the very next reporting cycle if the data were true to begin with. The best that you can do is to pay your bills, on time, every time.

3

Those companies are scams. They operate by disputing as many things on your credit report as possible and taking advantage of the fact that the credit agencies will remove items from your credit report if the company that put it there doesn't respond in a timely matter to provide documentation that it is valid.

It's kind of a sleazy approach, and worse they are charging you to do something you could just as easily do yourself by writing a letter.

If you still have the chance, run far away from that credit-fixing company.

1

Like JohnFx said, these companies dispute everything on your report which forces your creditors to verify what they've reported to the credit agencies. If they don't in time, the credit agencies must remove it.

I've worked for one of these companies and it's very dishonest. Don't do it if you know the item is legitimately yours.

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