Perhaps the most exciting value-added consumer service to evolve in the last decade is credit repair. Born of an essential need, the credit repair industry is quickly becoming a fixture in our landscape. Yet it is a new industry; credit repair companies of today are
pioneers and innovators, both in understanding and responding to that essential need.
Not Designed For Consumers
Credit reports and scores were designed for lenders, not consumers; they are tool for measuring risk. The credit reporting industry is complex, the product confusing, and the influence on our life the single most influential determinant of our ability to borrow, as well as the cost of that borrowing.
The Weight of the Matter
Your mortgage, your car loan, insurance, and even employment, may be dependent on the content of your credit report. A single error can result in lower credit scores, higher monthly payments, and worse.
And yet, for most consumers, credit reporting is entirely incomprehensible; there are three bureaus, each with their own format and content; and there are many scoring models, including those that have no resemblance to any used by lenders. To add to the confusion, most credit reports include questionable information – from the obvious to issues that are impossible to spot without intimate knowledge of the law.
The Future of the Industry
The credit repair industry offers a solution, but it is not fully formed. The best credit repair companies are listening to their customers, shaping their offerings around demand, adding features that serve a need, and providing real value. As this process continues, credit repair will emerge as an simple and elegant solution, a partner in all of our financial lives.