Employers often check candidates' credit, and credit repair companies can help resolve negative items. Payment history, amounts due, credit in use, and new credit are all factors that contribute to a FICO score. To improve your score, it's important to understand the traits of people with high scores. Credit repair statistics show that success rates vary from company to company, and the most significant credit rating gains are reported for bankruptcy recovery.
Are credit repair services effective? Credit repair statistics show that they often are. Of course, resolving disputes over credit reports takes time, and better results are achieved when consumers stay longer with a company. According to the same report, earnings of more than 100 points fall to 33% for consumers who used the services for 1 or 2 months. Credit repair statistics show that 26% of consumers who use these services report improvements in the range of 100 to 149 points.
At the higher end of the spectrum, 15.4% of consumers report gains of more than 150 points.The FTC's figures show that, for all consumers, the chances of significant improvements are quite low. According to statistics from credit repair companies, only 1 in 20 consumers sees a change of 25 or more points. Credit repair data shows that 33.4% start with a score of 580 to 669, while the percentages of consumers with scores closer to the perfect figure of 850 are much smaller. The results are also much more dramatic for consumers with lower scores: 49.3% of those starting in the 300 to 579 range show an increase of more than 100 points.The credit repair industry has had to deal with great consumer distrust due to several operators that fly at night and the difficulty of differentiating between reliable and unreliable service providers.
Credit repair data shows that other complaints filed with the CFPB include problems with customer service (19%), misleading or confusing advertising (17%), unexpected charges (13%), confusing or missing disclosures (10%) and an excessive cost of credit repair (6%). Because of federal and state laws to eliminate unscrupulous service providers, the credit repair industry is experiencing some improvement in its reputation.Among customers who spent at least 3 months with the same company, 26% report improvements in the range of 100 to 149 points. At the higher end of the spectrum, 15.4% of consumers report gains of more than 150 points. The highest percentage of people (53.5%) with more than 100 earnings are those who receive bankruptcy recovery services.The FTC's figures show that, for all consumers, the chances of significant improvements are quite low.
Among customers who spent at least 3 months with the same company, 71% report improvements in their credit ratings.An even larger proportion, 87%, state that their credit repair company's business practices are “professional” or “fair”. According to credit repair trends, 6.6% of consumers say they have had a “bad experience”, while 12% say they have had “shady” or “almost illegal” practices.One of the most common credit repair myths is that credit repair companies provide only one type of service. In addition to helping to eliminate elements such as delinquency, collections and cancellations, other main services reported are credit consulting (49%), setting up payments with creditors (48%), debt consolidation (46.6%), sending letters of challenge to credit agencies (39.8%), sending letters of good will (28.6%) and letters of cessation and desist (24.8%) to creditors, and helping to recover identity theft (21%).If you've been in such a situation or are interested in knowing what to do when that happens, you should find these credit repair statistics useful. But you don't have to earn a degree or spend years just to run a credit repair business efficiently.The credit repair industry is well established, the market is large and the future looks promising according to some analysts.
While starting a business is often difficult, starting a credit repair company is actually simpler than you think.Unlike other companies where you have to hire a team right away, you can run your credit repair company yourself when you start. Meanwhile, the Consumer Financial Protection Office (CFPB) found that much of the consumer credit repair documentation mailed to reporting agencies may not be transmitted to data providers.It's also beneficial to be a member of a non-profit credit repair trade association that follows standards set by the FTC and CFPB. All successful credit repair companies use similar techniques which can be broken down into simple steps.However, things can get pretty difficult for consumers with low credit scores affecting their ability to apply for loans and use credit cards. Yes, a credit repair business can be extremely profitable if you know how to manage it efficiently and take advantage of existing demand in today's market.