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The
Truth About Credit Repair
Have
you ever heard this before?
“Credit Problems? No Problem!”
“Your Bad Credit Erased…100%
Guaranteed”
If you have ever read this type of advertisement BEWARE!
There are numerous companies throughout the United States that claim they
can “fix” your credit reports for a fee. In most cases they
do little or nothing to fix your credit reports. What ends up happening
is these companies take your money and disappear with it and you’re
left with bad credit and less money in your possession. Many companies also
claim that they can create a new credit file for you by getting you a “New”
Social Security number. This is illegal and never actually works.
Did You Know?
Your credit history is maintained by companies called credit bureaus. These
are private companies that collect information reported to them by mortgage
companies, banks, department stores and other creditors. These bureaus can
legally report any accurate negative information for 7 years and bankruptcy
information for 10 years. Any accurate negative items that are within the
7 (or 10) year reporting period cannot be erased from your report by anyone.
Not even companies that advertise to “repair credit” can erase
this information.
Time is the only thing that will heal your credit report. By making consecutive
payments when they are due, you will be able to show a more positive rating
on your report, but your negative marks will not be removed.
Steps to Check Your Credit
You are entitled to see any information that the credit bureaus have on
file about you. This is required by law. To find out what is listed on your
credit report, you can follow these simple steps:
• Contact the local credit bureaus.
• Obtain a copy of your credit report. There may be a small fee if
you haven’t been denied credit within the last 30 days, during which
time it is free.
• You can visit the credit bureau office to review your credit report
in person.
• Review your credit report for any mistakes.
If you do not understand something, you can ask. By law, the credit bureaus
are required to explain your report to you. If a mistake is found, notify
the credit bureau of the mistake and provide them with as much information
regarding that problem. A reinvestigation will be done to dispute the information
(if legitimately incorrect) and make all necessary corrections needed. A
corrected copy of your report should be sent to anyone who has received
the incorrect version within the past 6 months.
Are You A Victim?
If you have ever encountered a serious problem with a credit repair company,
you CAN report them. You can contact your local consumer affairs office
or your state attorney general. Check with your local directory assistance
to see if a toll-free number is available.
You can also contact the Federal Trade Commission (FTC) to report any situations.
Although the Commission cannot rectify individual credit problems for the
consumer, it can act against a company if they see a pattern of possible
law violations. If you feel a company has engaged in credit fraud you can
send complaints to:
Correspondence Branch
Federal Trade Commissions
Washington, DC 20580
Myth
Credit Clinics and/or Credit Repair Services can “clean up”
your credit report.
Fact
No one can legally remove accurate information from a credit report. However,
you can request a reinvestigation on any of the information in your file
that you dispute as inaccurate or incomplete. You are entitled to a free
copy of your personal credit report if you have been denied credit within
the last 30 days. If you have applied for credit, insurance, or employment
and have been denied due to the information supplied by the credit bureaus,
the company you applied with must provide you with the name and address
of the credit bureau they report to. You can dispute mistakes or outdated
items for free. Simply ask the credit reporting agency for a dispute form
or submit your written dispute, along with any supporting documentation
you have. Note each item in your report that you wish to dispute, explain
the reason for the dispute, and request a reinvestigation. If the reinvestigation
doesn’t resolve your dispute, you can request that your “version
of the dispute” (100 words or less) be included in your file and in
future reports. |
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