It seems like you can't even turn on the TV or pick up a newspaper without seeing an ad for a credit repair service. My inbox is full of emails with titles like "Credit problems? No problem!" or "We can get rid of your bad credit, guaranteed!" "antified." Some of these companies are now using telemarketers to sell their services, so it must be a good business to be in. They all seem to make the same misleading claims, like "Create a new credit identity legally" or "We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!"
Don't for a second believe these false claims. They are just a scam to get your money. These companies try to get people who have bad or poor credit to work with them. They will often promise to clean up your credit report, for a fee, of course. This will then let you get that car loan you wanted or that mortgage you were turned down for. Maybe you need a higher score to get a job. The truth is that most of them either can't or won't do what they say they can. Once you've paid these companies hundreds or even thousands of dollars in fees, they usually don't do anything to help your credit score. Some will just take your money and run. There is only one way to clean up your credit report, and it takes time, effort, and a plan for paying off your debts that will help your credit score rise over time.
Here are some things to watch out for if you decide to hire a credit repair company instead of doing the work yourself. Stay away from companies that don't tell you what you can do for free on your own or what your legal rights are. Watch out for companies that tell you not to talk to a credit reporting company directly. This is a big red flag. Do not give your money to any company that tells you to try to make a "new" credit identity with a new credit report by applying for an Employer Identification Number to use instead of your Social Security number.
If you use the mail or the phone to apply for credit and give false information, you could be charged and prosecuted for mail or wire fraud. It is against the law to lie or give false information on a loan or credit application, to misrepresent your Social Security number, or to use a lie to get an Employer Identification Number from the Internal Revenue Service.
Nothing but the truth, the whole truth, and nothing else
You can't legally get rid of accurate negative information from your credit report. Under the Fair Credit Reporting Act (FCRA), you can ask for an investigation into any information on your credit report file that you think is wrong or missing. This service doesn't cost you anything. You can do everything a credit repair clinic or service could do for you legally on your own for little or no cost if you put in a little time and effort.
According to the Fair Credit Reporting Act (FCRA), you are entitled to a free credit report if a company does something bad to you, like turn down your application for credit, insurance, or a job, and you ask for your report within 60 days of getting notice of the action. In the notice, the consumer reporting company's name, address, and phone number will be listed.
Under the Fair Credit Reporting Act (FCRA), you can now get one free credit report from each of Equifax, Experian, and TransUnion once a year. The year runs from September to the end of August. When you submit a change to your report or ask for an item to be looked into, you will also get an updated report with the results of the investigation. The free credit reports will list everything that is on your credit report, but they won't include your credit score. Under the Fair Credit Reporting Act, you have to pay for your credit score, which usually costs around $5.00 from each provider.
