Credit Repair: Evaluating What To Do

Are you wondering about what you have to do with credit repair? Or maybe you’re just curious whether your credit needs fixing or not? Last time you checked, you didn’t but who knows what could happen in five years? Maybe, you already know that you do need credit repair but you’re unsure whether to do it yourself or pay for the services of a credit repair company? Or perhaps, you’re about to undergo a credit check to qualify for a career promotion and you’re hoping to make it absolutely sure that you’ll pass?

If so, here’s everything you have to know about credit repair.

Each step that you take in credit repair must be evaluated carefully. If you’re going to do it yourself, prepare beforehand by reading credit repair books, searching the Internet for advice from experts, purchasing a do-it-yourself credit repair kit and so on.

As you read, you’ll see that the first thing everyone shall advise you to do is to procure a copy of your credit report. If you were under the impression that only finance companies, banks and merchants can ask for a credit report, you’re wrong. As long as you’re asking for a credit report done on you, then certainly you can ask for a copy. This would cost you a bit so better prepare to spend. We advise you to take at least copies of your credit reports from the following credit bureaus: TransUnion, Experian and Equifax because most financial institutions usually base their decisions on either of the credit reports provided by the aforementioned credit bureaus.

Got your copy now? Okay, roll it out and study each and every item in the list. Don’t overlook anything, even your personal records because you’re certainly not the only Lisa Smith in Washington, D.C. and who knows if the other Ms. Smith have unimaginable debts that were somehow mistakenly listed under your record? It pays to be cautious, okay. Now, with a do-it-yourself credit repair kit, they’re sure to advise you about the common things to watch out for. You’ll be surprised to know that approximately thirty percent of credit reports contain items. So who knows if you’re one of that thirty percent?

Lastly, if you find out anything to dispute, it’s time to fill up the form for disputes and then approaching the credit bureau responsible for the erroneous credit report. Take our advice and use time to your disadvantage. File for disputes during the busiest times of the year like the ones following Thanksgiving and Christmas.

Credit Repair: Don't Get Scammed

You see the ads 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. They 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. They're just not true. Only time, a conscientious effort, and a plan for repaying your debt will improve your credit report.

The Warning Signs

If you should decide to respond to an offer to repair your credit, think twice. Don't do business with any company that:

  * wants you to pay for credit repair services before any services are provided

  * does not tell you your legal rights and what you can do yourself — for free

  * recommends that you not contact a consumer reporting company directly

  * suggests that you try to invent a "new" credit report by applying for an Employer Identification Number to use instead of your Social Security number

  * advises you to dispute all information in your credit report or take any action that seems illegal, such as 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 make false statements 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.

The Credit Repair Organizations Act

By law, credit repair organizations must give you a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before signing the contract. The law contains specific consumer protections. For example, a credit repair company cannot:

  * make false claims about their services

  * charge you until they have completed the promised services

  * perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees.

Your contract must specify:

  * the total cost of the services

  * a detailed description of the services to be performed

  * how long it will take to achieve the results

  * any "guarantees" they offer

  * the company's name and business address.

Where to Complain

If you've had a problem with any of the scams described here, contact your local consumer protection agency, state Attorney General (AG), or Better Business Bureau. Many AG's have toll-free consumer hot-lines. Check with your local directory assistance.

Credit Repair, A Chance For Much Needed Redemption

There are many actions that you can defend by saying "oh, I was just young and foolish then," but when talking about credit this will only get you sympathy from friends. You can pay dearly for foolish financial decisions and laziness for years after you were "young and foolish," keeping many people from realizing their full potential financially for so long that by the normal age of retirement rolls around they are forced to work 5 or 10 years longer. The answer that smart business and lawyer types have come up with is called credit repair.

This invention of credit repair has literally been a life saving thing for thousands (maybe even millions) of folks who were bit in the butt by the false flash of credit and the increased power to buy. The redemption is well worth the time, money, and effort that it takes to get your report clean—just as if you had never had a problem with debt—and allows you to get on with your life and enjoy financial freedom that you never dreamed was possible.

The best part of this answer, and the part that makes it work so well, is that it is a good deal for everyone involved. You see credit cards and other sources of credit make money when people owe them a balance but only when the person is able to make regular minimum payments on this debt. The sad thing is that there are so many people that became over extended to the point of crippling them so that they couldn’t even make the minimum payment. The loan companies are more than happy in these situations to cut their losses and the original balance back (forgiving some of the finance charge they are owed and allowing the credit repair) because money in the bank makes more money.

So the system allows people to make the credit report look as if they were regular and on time with their payments and allows them to pay back the outstanding balance at rates that will not sink them into oblivion. Credit repair is done through the legal system with lawyers making deals on an individual basis so that both parties win and are able to walk away from the situation in better shape and with a better future. The process also requires that the debtor go through some financial training so that the situation won’t repeat itself. Sound like redemption to me, and I like that sound!

Credit Repair Through Debt Consolidation

Although everyone's economic status and situation is particular, almost all of us are in some sort of debt at any given time. This can mean small debts like credit card bills or in-store financing, as well as larger ones like outstanding loans and mortgages. What this means is that almost everyone is dependent on being allowed a certain amount of credit, and without credit many things that you take for granted will become difficult. The key to your credit status at any given time is your credit report that is maintained by a credit bureau. Once you fall into default, or miss payments to your creditors, your credit bureau will receive notice and you will find yourself saddled with a poor credit rating. Effective credit repair involves many different steps, and is particular to each individual's situation. A good solution for most people in terms of credit repair, however, is debt consolidation.

One of the most important things in credit repair is to act quickly. Although your credit rating will become damaged as soon as you begin to miss payments to your creditors, it will get continually worse if you continue to do so. Many people get confused into thinking that credit is either "good" or "bad," and that once they get into trouble with a creditor it's fruitless to try and rectify it. The opposite is true, however, so even if you are in bad standing with creditors, credit repair requires that you pay off your debts as quickly as possible.

The problem, of course, is that you probably don't have the money to pay off the debts, after all, your economic situation probably was the reason for the missed payments in the first place. It is for this reason that debt consolation can be an excellent tool in credit repair. It works by consolidating all of your debts into one loan. In other words, if you have multiple outstanding debts, you take out a loan from one company, use that loan to pay the debts, and then make payments only on that loan.

What debt consolation achieves is some flexibility in situations where your debt is becoming unmanageable. Although you will ultimately owe the same amount of money, you could get a debt consolidation loan over a long term, so that your monthly payments will drop. Most importantly, debt consolidation immediately puts you back on solid footing with your creditors, and ultimately bodes well for credit repair. Things won't be perfect, but your creditors will report that you have cleared up your debts, and so the process of credit repair can begin quickly.

Debt consolidation is an important tool in credit repair because it allows your status with creditors to change very quickly: you go from someone on bad terms with multiple creditors to someone on good terms with a single one. It allows you to stop the damage before things get out of hand, and gives you the breathing room you need to engage in credit repair. In this way intelligent debt consolation is a valuable tool in credit repair.

Credit Repair Through Credit Counseling

Like many other things in life, budgeting is a skill. Some people are better then others at managing their income and keeping in good standing in regards to their debts. Almost all of us have some sort of debt at any given time: a credit card bill, and outstanding loan, or a mortgage. By managing these debts properly, you will maintain a good credit rating which will allow you to continue to receive credit in the future. If you fail to make timely payments towards your loans - or worse, you let them go in default - you will find yourself stuck with a poor credit rating, which will rob you of many economic opportunities. In order engage in credit repair, you must slowly build your credit rating back up again. One thing that can help you do this is to seek the help of a credit counselor.

In general, credit counseling is performed by non-profit agencies, and is not to be confused with for-profit credit repair companies. The latter should be avoided. Credit repair companies have a reputation for being scams, especially those ones who advertise online. Even if it doesn't turn out to be a scam, it's likely that a credit repair company will do nothing that you can't do yourself: they'll direct you to obtain your credit report and challenge all negative items on it, and may even suggest you attempt illegal activities like getting a "new" credit rating thorough a different address.

In contrast, a credit counseling service will only provide advice, and in a context that precludes a profit motive. This is the best and most intelligent way to engage in credit repair. To deny that rebuilding your credit rating will be a long process requiring time and discipline is to do yourself a disservice, and a credit counselor will help you make the long term plans and decisions you need to in order to engage in effective credit repair.

Most good credit counseling organizations will provide you with advice and workshops, as well as educational materials. They will help you learn to both make and stick to a budget, which over the long term will be extremely beneficial to your credit rating. They will also be able to provide you with one-on-one counseling, so you can examine and learn to make good economic decisions based on your particular credit experience.

The problem with credit repair companies - and the reason you should be suspicious of them - is that they propose a quick, one size fits all solution. Anyone who claims they can quickly fix your credit without knowing anything about the situation is not being truthful. A credit councilor can be crucial in providing exactly the kind of particular attention that a credit repair company will avoid.

Most importantly, if you engage in credit repair by using a councilor, your solutions will be more long term, because you will be learning how to manage your budget more effectively, and making permanent changes to your spending habits. This is far preferable to paying a credit repair company that promises a quick solution that is of no educational value to you.

Credit Repair System

The Credit Repair System has tools available that helps many debtors find relief. Credit repair system is the steps to recovering from debts, while getting back on your feet again. If you have bad credit, you already know how difficult it is to reestablish a respect in society. Struggling down many roads, I know you have asked over in your mind, "How can I get out of debt?" The truth is we all have had bad times and some of are able to get back on our feet again quicker than others do. Therefore, you are not alone in this fight to reestablish credit. Even rich people have filed bankruptcy, so do not think you are centered out from the rest of the world. In this article, I am going to make it quick and to the point, helping you get out of debt through the process.

Repair System Kit

I will guide you through a process that will lead you step-by-step through credit repair.

1. Get copies of your credit report from TransUnion, Equifax, and Experian.

2. Overview your credit report watching closely for errors (bills you did not accumulate).

3. Dispute any errors on your credit report immediately with the three credit bureaus.

4. Once your report is clear start saving money, but cutting back, increasing your income, and continues disputing other debts that may occur if necessary.

5. Lay out a budget that matches your monthly installments, a separate budget that comes close to your debts as possible, and finally a budget that meets your demands on survival after you have cut back funds.

6. Finally, start paying on your secured loans first, and work through your unsecured loans gradually.

If you follow these steps to the letter, you will eventually see where it pays off. Starting with step one we can see we need to know where we are out before we can get out of our situation. Having a basic overview of your report regularly can prevent your credit scores and ratings from being affected by errors or identity theft.

Step 1 is a basic outline of where you are at, where you are going, and how you will get there.

Step 2 is obvious. If you find errors on your report, the first thing you want to do before paying your debts is to clear up the wrong that has been done to you.

Step 3 is also obviously, since you want to find a solution to repairing your credit. If you save money by cutting back, finding a way to make more money, and budget you will have a guaranteed strategy to getting out of debt.

Step 4 the budges should match your financial situation allowing you to repay your debts and survive in the process. The budgets if carefully developed will allow you additional funds for savings if you plan your strategy right.

Step 5 once you start paying off your credit you will notice almost immediately a result. The result may be a rise in your self-esteem and confidence, but it is a start to a better future.

There is nothing more rewarding than being free of financial obligations. When you walk out in the public your friends, family and neighbors will acknowledge a nature high, and ponder on how they too can be like you. If you follow the steps you will not only notice results of relief, you will also notice an increase in your income. In addition, if you have any debts that have not hit the collection agencies, find a solution for getting those bills up to date. You can call your creditors in the first four weeks of late bills and let them know your situation, including your financial status to repay the debt. Often creditors will make arrangements for your to pay each month on your bills. Make sure you meet your creditors’ expectations, since they took a chance on you in first place.

This is the ultimate credit repair system that will get you out of debt.

Debt Repair Agencies, Debt Consolidation, and other sources are often out to take advantage of the vulnerable, so relying on your self to get out of debt is the only system guaranteed to work most times.

Credit Repair Steps

In this article, we will discuss why this credit repair is so important and how you can benefit from understanding the steps to repair your credit.

Credit repair is not easy all the time but there are answers offered to help us get out of debt. We all have payments and sometimes those payments are outrageous. Paying bills is constant and there is no break so the best potential answer then is requesting for help and working to pay back your debts.

The changes in law are making it hard for consumers to repair their credit, yet some regulations to the law make it feasible to get all three of your credit reports for free. If you have a credit history of carelessness you want to get copies of your credit reports to ensure no false claims were made against you. If the creditors or bureaus file a false allegation on your credit report you might be entitled to sue the computers.

If there are false claims against you on your report the first phase is to file a dispute against the claims. This can postpone your payments and if you don’t owe the charge, it can free you from the debt once the bureaus find that you are not liable. It is imperative that you get in touch with the bureaus immediately if you become aware of any claims made against you that you deem are not your responsibility. Equifax, TransUnion, and Experian all have a dispute hot-line on hand.

Disputing is a move in the right direction for fixing your credit. Most information on your credit report is from credit card companies, utility providers, banks, judgments, and so on. Your information normally stays on your credit report no less than seven years. Positive results regularly reside on your credit report for about ten years. Tax liens regularly reside on your credit report for approximately 15 years and bankruptcies regularly reside on your credit report for ten years.

In the introduction, you learned a little about how credit repair can be beneficial to you. The article will continue explaining the need to dispute claims that are erroneous on your credit report.

If you have some debts on your credit report that don’t belong to you, it is smart to file a dispute as soon as you can. The bureaus will look into the accusations made against you and if they find it is wrong then they will take away the claims. If the information on your credit report has no resolution then the companies will regularly delete or alter the claims against you. This is why it is imperative to keep track of your credit report.

You can also look at your credit score from the credit reports and obtain facts on how your score is affected. If you see that there are claims against you that is your responsibility and can not appear to come across a solution, it is smart to get informed. If you think credit repair companies that say they can take away items from your credit report and reduce your monthly bills, then you are misled. Nearly all of the companies are regulated by the law. This means the government has cause to think that the companies may deceive their consumers. Thus, most of the companies that say they can get you out of debt in little or no time are regularly waiting to take money from your pocket, while putting you at danger of loosing your assets.

If you want help or assistance with your credit then it is smart to go to sources that present counseling at the National Foundation for Credit Counseling. The representatives are well trained in assisting consumers obtain a solution to take away debt. They will also help get the creditors off your back. It is imperative to know your rights if you are in debt and look for a solution to repair your credit.

Building credit that has been affected is hard in a lot of cases but never impossible. Millions around the world in the past has had some financial modification that affected them negatively. For that reason, you are not by yourself and there are many that are conscious of this fact. The Consumer Response Center is a wonderful source for discovering information about your rights. In some cases, some of us have additional rights than others. Victims of Identity Theft or Military Personnel that have been robbed of their identity have additional rights than people negligent of paying on time. Recognizing what is accessible to you is the first phase to repairing your credit and becoming back on track.

Having the steps for credit repair information handy will help you a great deal the next time you find yourself in need of credit repair.

Credit Repair Specialists – They Might Help You, But Why Not Do It Yourself?

Credit repair specialists can be of help to you if you notice that there are inaccuracies in your credit report. It is important for everyone to review his/her credit report at least once a year to verify that the information it contains is correct. You can get the free report from one of the 3 major credit bureaus, or even all three if you wish. Once you notice a discrepancy that is detrimental to your credit, you have to take steps to repair it. This is where credit repair specialists can help you.

Before you contact a credit repair specialist about mistakes in your credit report, you have to make sure that you are correct when you say this is a bill you don’t owe. The specialists cannot wipe out any unfavourable items from your credit report just on your say so. If you need credit repair help for your bad credit rating, then it is only you who can do that.

Credit repair specialists will take a look at your credit report. If the report says you have a bill outstanding, for example, you do need to provide proof that you have repaid the amount in full. You have to verify all your claims of mistakes. If the bills named in the report are legitimate, then they are your responsibility. In order to have an item removed from a credit report, it has to go through legal channels, but the specialists will help you with this.

You don’t have to contact credit repair specialists if you do notice a mistake in your credit report. These people do take the work off your shoulders, but you can do it yourself. All you have to do is contact the credit bureau that supplied you with the report and notify them of the mistake. They will send you the appropriate forms to fill out and give you instructions as to how you should proceed. It doesn’t cost any money to take this route and do your own credit repair. Help is readily available from the 3 major credit bureaus and is free for you to use. Although credit repair specialists are trained for this job, you do have to pay for their help. Why pay, when you can do it yourself?

Credit repair specialists can help, but you can do it all yourself.

Credit Repair Service

Credit Repair Services

If you are in the business of credit repair services. You may have at one time considered purchasing credit repair leads.

The benefit of purchasing credit repair leads, is that the customer is committed to having their credit repaired by a professional such as yourself.

These customers are not playing games or surfing the net looking for information and merely contemplating the idea of credit repair, they are very serious about it, and they are waiting on a phone call.

Wether or not you are an established credit repair business or a start up, credit repair leads are a good option when considering lead sources.

So where is the best place to get credit repair leads?

The obvious answer would be to find a credit repair lead company, but that isn’t always as easy as it sounds.

Yes, it is easy to find the lead company via the internet, but finding a good one with reasonable pricing is where the challenge lies.

For starters, find a lead company that obtains their leads through web sites they own and operate themselves.

Steer clear of the companies that buy their leads from other companies and recycle them. You never know how many times that selling company has sold the lead.

Try to find a company that not only sells their own leads, but sells them at a reasonable price, exclusively, and in real time if possible.

Make an attempt to contact someone in their customer service department. Ask them as many questions you feel to be appropriate. If you are not satisfied with the answers to your questions, or the quality of the service you receive, than move onto the next company.

The quality of the service you receive is usually an indication of the quality of the lead you receive, so proceed with caution.

Credit Repair Secrets that No Creditor wants you to know about

When it comes to Consumer Credit Repair there are many avenues to choose from as a consumer. By far, the most effective credit repair tool is the Credit Repair E-Book. This is due to the fact that, (A) it is usually cheap (under $20) and (B) the credit law is always changing. Using a traditional book (paper back or hard back) leaves room for indirect misinformation and more importantly more money spent. An E-Book can be easily updated assuming the company or person selling the credit repair information is a well informed proprietor who keeps up with the credit laws. The other option is shelling out a small fortune to retain the services of an attorney or traditional debt consolidation company. That’s where budget comes into play for most of us.

There is one E-Book in particular that is a growing favorite on the internet, according to web hits and sales. ConsumerVictoryCredit.com has become the crowd pleaser over the past year. Taking a deeper look into the reason for their sudden popularity, is a Credit Secret that no one else offers. This would be how to utilize consumer revolving accounts to raise your credit score for free! This means that, you can legally raise your credit score using a willing party’s credit history. There are many companies out there such as, Trade Line Solutions that provided such a service. Unfortunately, they usually charge somewhere between $1,200 and $4,500 dollars. The reason for the outrageous price tag is because they guarantee your score to shoot up 200 points in 30 days. And they usually deliver, if you have that kind of money. This works by attaching your credit to commercial revolving accounts, up to 5 at a time. The more accounts you pay for the faster your credit is restored.

ConsumerVictoryCredit.com includes in their Credit Restoration Kit, the utilization of these techniques for Free. In addition it also includes: Over 25 Sample Dispute Letters to the Bureaus, Glossary and Definitions of Terms, How to Increase Your Credit Score with One Call (Bonus Chapter), and 24/7 Customer Support. This information will only set you back about $10.

Credit Repair Scam Tips

There are credit counseling services that are free of charge. Check into those.

Check with the Attorney General's office and the Better Business Bureau for complaints filed on company.

If you are asked to sign a contract, Make sure you read and understand before you sign; there could be hidden charges, etc.

Check with your creditors to make sure that the creditors will work with this agency.

Be leery of companies that promise to repair your credit. These companies can not do anything that you can't do yourself to repair your credit.

Check with the company to make sure that you will have access to payment records for payments made on your behalf.

There are several ways these credit repair scams claim they can help. For a fee they will offer to:

Clean up your credit record. Only you can do this, and it takes time, patience and a personal repayment plan. No one else can speed up the process or do it for you.

Offer you a Visa or Master Card even if you've been turned down by banks. Sometimes you must call a 900 number at a cost of $25 to $50, and you still may not receive a credit card.

Show you how to apply for credit with a new tax ID number, usually an EIN. (Employer Identification Number, used by businesses to report financial information to the government.) This is called file segregation (creating a new credit file separate from your old not-so-good credit report.) Not only is it illegal to apply for an EIN under false pretenses, if you obtain the new number through the U.S. mail or by telephone, you may be charged with mail or wire fraud and face fines and/or jail.

Ways to improve your own credit rating:

Obtain a "secured" credit card from a major bank and make the payments on time every time.

Make sure any mistakes on your credit report are corrected. The credit bureau can tell you how, at no cost to you. However, there is nothing anyone can do about negative information that is accurate. It cannot be "erased." Only timely payments for an extended period will help.

Contact a non-profit credit counseling service in your area.

If you realize you can't pay your monthly bills, contact your creditors immediately and arrange a payment plan.

Remember, there is nothing a credit repair service can do for you that you cannot do for yourself for free. It just takes time.

Credit Repair Scams: The Warning Signs

"Credit problems? No problem!"

"We can erase your bad credit Ч 100% guaranteed."

"Create a new credit identity Ч legally."

"We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!"

Do yourself a favor and save some money, too. DonТt 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 but you have to remember that it can take time. If you stick to a plan you can repair your credit and get your life back to normal. Take it one step at a time and make sure that you are not planning to do anything illegal.

The Scam

Everyday, there are companies nationwide that appeal to consumers with poor credit histories. They 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, they canТt deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money.

The Warning Signs

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

companies that want you to pay for credit repair services before they provide any services.

companies that do not tell you your legal rights and what you can do for yourself for free.

companies that recommend that you not contact a credit reporting company directly.

companies that suggest that you try to invent a "new" credit identity Ч and then, a new credit report Ч by applying for an Employer Identification Number to use instead of your Social Security number.

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. ItТs 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 services they have promised.

Credit Repair Scams And How To Avoid Them

Everyone by now has probably gotten at least one email, junk mail, or other type of solicitation concerning Credit Repair. The truth is that around 80% of Americans have credit issues they need to deal with so there is a huge market for credit repair services.

But with every large market there is one thing you can be sure of. It will also draw out the unethical people and the scammers and thieves as well. In this article I will tell you about some of the scams and offer you a little free advice on how to avoid credit repair scams and rip-offs.

The first thing that should be discussed is that anytime something sounds too good to be true it most likely is. When you hear or read the words, “Free”, you should beware. My own website has the word free in it because I actually provide free information. However, if you were to want me to do all that is necessary to repair your credit, you can bet you’d have to pay me for the service.

So, when you see someone offering to fix your credit for free, ask yourself, “How can anyone work for me for free?” Some claim to be a nonprofit organization only there because they are interested in helping people fix their credit.

There may actually be one out there that does this and if you ever dig them up email me a link. For the most part I would be even more leery of those that claim to be a nonprofit. Even the federal government is now looking into credit repair organizations that claim to be nonprofit.

What these companies or credit repair clinics do is something you can do for yourself. They dispute claims by creditors. You can do this by going to the big three, Equifax, Experian, and TransUnion Corporation. If the creditors fail to respond within 30 days, then the item is removed from your credit report.

Sounds great right? Well, not exactly. Even if the creditor fails to respond in the 30 day time period, they can still add the item back onto your credit report. That means that the money you paid for someone to do that for you was wasted. You can get a free credit report from each of these companies once per year. So that is three times per year that you can check up on your credit report.

According to the Federal Trade Commission Website, “A federal judge has ruled that a bogus credit repair company and its owner violated the law by making false and misleading claims, and billing in advance for its services, and has ordered them to pay more than $322,000. This action was a result of “Project Credit Despair,” a crackdown on 20 operations that deceptively claimed they could remove negative information from consumers’ credit reports – even if that information was accurate and timely.”

If the information on your credit report is accurate and timely, there is no one that can get that removed for you. The best thing you can do in that case is to contact the company and make some type of arrangements to pay off the debt. Offer a cash settlement that is less than the total amount owed and sometimes they will help you and take the offer. You have nothing to lose by making that offer and everything to gain.

The FTC advises that only time, a conscious effort, and a personal debt repayment plan can improve your credit report. The first step is to learn what information is in your credit report. If you find errors or mistakes, federal law gives you the right to have them corrected – free of charge. Federal law requires that the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – provide you with a free copy of your credit report once every 12 months, if you ask for it. To order your free report, visit annualcreditreport.com, call 1-877-322-8228, or complete and mail the Annual Credit Report Request Form. Other credit repair information is available on the FTC’s Web site, ftc.gov.

I hope this article has helped you to understand about credit repair. There are some legitimate companies out there. Just beware of any that tell you that they can remove items from your credit report that are legitimate debts. If they offer to negotiate directly with creditors or help you consolidate your debt, then you may benefit from using professionals. However, on the debt consolidation part, watch that you do not end up paying a higher percentage for interest than you are currently.