Common Questions

Can questionable, bad credit be deleted or corrected?

Can credit repair companies be trusted?

How much does bad credit cost?

Does paying off past-due accounts neutralize their negative status?

Can deleted items reappear on my credit report?

Are items such as bankruptcies and foreclosures impossible to remove or correct?

Should consumers try credit repair on their own?

Does bankruptcy wipe the slate clean for a second chance?

Do creditors bother to read the 100-word statement?

Can changing one's SSN or EIN tax number help credit matters?

Does enough good credit offset bad credit?

Does the CCCS help consumers restore credit?

Do negative items have to remain listed for 7 years?

What is the Fair Credit Reporting Act (FCRA)?

How much does bad credit cost?

As you consider retaining Lexington Law you would do well to look at the price you are already paying for bad credit. Below are just a few examples of the cost of bad credit.

Credit Cards
Most if not all prime credit cards are entirely out of reach to consumers with bad credit. And the few credit cards that are available to them (known as "sub-prime" cards) typically require high setup fees or recurring monthly fees, offer very low credit lines, often require cash deposits, and in most cases do not even report your positive credit activity to the credit bureaus.

Automobile Financing
If you are making payments on a car, you are probably paying between $1,500 and $5,000 more just for having bad credit. This added interest shows up every month in a higher payment. Take a look.

$20,000 car paid over 5 years:
CREDIT STATUS	RATE	PAYMENT	COST OF BAD CREDIT
Perfect Mildly Damaged Damaged	6.768% 9.738% 14.7295%	$394 $422 $473	$0.00 $1,680 $4,740

Home Mortgage
Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $50,000 and $130,000 more in interest if you are buying the home with bad credit.

$100,000 home paid over 30 years:
CREDIT STATUS	RATE	PAYMENT	COST OF BAD CREDIT
Perfect Mildly Damaged Damaged	6.4065% 7.581% 12.5015%	$626 $705 $1,067	$0.00 $10,440 $158,760

For details on how this information is estimated, please click here.

Does paying off past...

Bad credit can also have other less obvious but still very significant costs.

With many employers now using your credit reports as a factor in determining your potential as an employee, a bad credit score could contribute to you not getting hired for a better paying job.

Insurance companies have also adopted the practice of using your credit reports to judge your character.

An insurance company may charge you higher monthly premiums if you have a lower credit score.

*Important: While the testimonials and other information on this website may be exciting, Lexington Law promises only to perform the steps we've agreed to in each client's case and to charge each month only for steps already completed. As with any legal work, no outcome is promised. Your results will vary.

© 2010 Lexington Law®. All rights reserved. John C. Heath, Attorney at Law, PLLC, d/b/a Lexington Law. Lexington Law is a group of law firms that may also be referred to throughout this site as "Lexington," "Lexington Law Firm," "we," "us," or "our firm". The number of items removed represents the combined results of the group.