Credit Repair: Do It Yourself Credit Repair

Credit Repair: Do It Yourself Credit Repair May Be Your Best Solution

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Credit Repair Companies and Credit Repair Services

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. Almost all credit repair companies all make the same claims:

• "Credit problems? No problem!”
• “We can erase your bad credit — 100% guaranteed.”
• “Create a new credit identity — legally.”
• “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

Do yourself a favor and save some money, too. Don’t believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.

This article explains how you can improve your creditworthiness and gives legitimate resources for low or no-cost help.

Credit Repair Company Scams

Everyday, credit repair companies nationwide appeal to consumers with poor credit histories. Credit repair companies promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, most credit repair companies can’t deliver. After you pay them hundreds or thousands of dollars in fees, these credit repair companies do nothing to improve your credit report; most simply vanish with your money.

Credit Repair Scam Warning Signs

If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:

• credit repair companies that want you to pay for credit repair services before they provide any services.
• credit repair companies that do not tell you your legal rights and what you can do for yourself for free.
• credit repair companies that recommend that you not contact a credit reporting company directly.
• credit repair companies that suggest that you try to invent a “new” credit identity – and then, a new credit report – by applying for an Employer Identification Number to use instead of your Social Security number.
• credit repair companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the credit repair services they have promised.

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