Ever think about paying someone to clean up your credit report? Sounds easy enough, after all, who has the time to do it themselves? You may have heard advertisements offering to “fix” a poor credit history, which would make it easier to obtain new credit, or get a lower interest rate on a mortgage and auto loan. It could actually save you money! Wow! Before you even contact a credit repair service, let alone sign any contract, know that these types of businesses have been known to scam innocent consumers out of their hard earned money and rarely deliver any of the services they promise. The Federal Trade Commission and several attorneys general have sued credit repair companies for falsely promising to remove bad information from credit reports. Your best weapon is knowledge. One such tactic used by credit repair services is claiming they have clout with the credit bureaus.

If someone tells you they have a “connection” with the credit bureaus or a “friend” on the inside to get all the negative information deleted from your credit report, they’re telling you a lie. Plain and simple. They just want your money. Some may send out letters to the bureaus to dispute the debts, spurring investigations. However, if the negative information is legitimate, it will stay on your report. Eventually, the credit bureaus will ignore the bogus requests, but you’ll still be paying fees.

Know that accurate and timely negative information on your report cannot be removed until the appropriate amount of time has passed. Most information remains on file for about seven years, or ten years for bankruptcy. The bottom line is that there are no quick or easy fixes for a poor credit history. Take a look at the following facts:

·        Private companies, called bureaus, collect and maintain credit information given to them by banks, mortgage companies, stores, and other creditors.

·        Only time, a conscious effort, and good repayment habits will improve your credit score and history.

·        Genuine mistakes, outdated items, and errors on credit reports can be removed, free of charge. These rights are protected under the Fair Credit Reporting Act.

·        The Credit Repair Organizations Act prohibits a credit repair company from collecting money until after it does what they promised. If they ask for money up front, it’s a bad sign that they’re not honest.

 

So remember, there isn’t anything a credit repair service can do for you that you can’t do for yourself!