Beware of credit repair scams!
Many so-called Credit Repair companies make claims like:
- "We can remove bad loans, bankruptcies, judgments and liens and improve your credit score!"
- "We can erase bad credit!"
- "Bad credit history? We can improve your credit score in 30 days!"
Sound a little too good to be true?
Credit Repair companies target consumers with bad credit histories or low credit scores promising to clean up or eliminate negative items on their credit report...FOR A FEE!
You may have received a call or email and wondered..."How did they get my name and information?"
The credit reporting agencies sell information to companies!
Nice to know!
Anyway, the truth is, these companies cannot provide an improved credit report by using methods or tactics that you could not do yourself!
Step 1:
If you haven't done so already, request a FREE copy of your credit report from each of the 3 major credit reporting agencies:
- Equifax
- Experian
- TransUnion
You can receive your FREE report by going to www.annualcreditreport.com
Step 2:
If you find inaccuracies and/or errors, you will dispute them by:
Write a simple dispute letter stating the dispute and provide copies of documents that support your dispute:
- Paid off statements
- Settlement agreement with copy of processed check
- copy of the error on the credit report
Step 3:
Mail your letter with supporting documents to the credit reporting agencies by CERTIFIED MAIL, return receipt requested so that you can document that the agency received it.
For addresses of the three major credit agencies, click here.
Credit reporting agencies must investigate your claims within 30 days.
They must forward all the relevant data that you provided to the company to the company.
Once the information provider receives notice of a dispute from the consumer reporting agency, it is required to:
- investigate
- review the relevant information
- report the results back to the credit reporting agency
If the investigation proves that your dispute is true, the information provider has to notify the credit reporting agency so that they can correct it in your file.
As you can see, this may take some time and effort, but you could certainly save yourself several hundred dollars by doing-it-yourself.
For a complete report from the Federal Trade commission, click below: Credit Repair: How to Help Yourself
