You might see or hear ads from companies that promise to "clean up" or "erase" your bad credit and give you a fresh start. They charge high fees, usually hundreds of dollars, but do not deliver on their promises.
If you are thinking of paying someone to "repair" your credit, remember this:
No one can require a credit bureau to remove accurate negative information before the legal time is up.
There are no "loopholes" or laws that credit repair companies can use to get correct information off your credit report.
No credit repair company can do anything you can't do for yourself.
A "money-back guarantee" does you no good if the company has gone out of business or refuses to make good on its refund promise.
The only way to "repair" bad credit is with good credit practices over a period of time.
Some credit repair companies promise not just to clean up your existing credit record, but to help you establish a whole new credit identity. Remember, it is illegal to make false statements on a credit application or to misrepresent your social insurance number. Beware of any company or method that:
encourages you to omit or lie about bad credit experience when you apply for new credit;
tells you to use a new name, address, or a new number in place of your social insurance number in applying for credit; or
says it is legal to establish a new credit identity.
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You might see or hear ads from companies that promise to "clean up" or "erase" your bad credit and give you a fresh start. They charge high fees, usually hundreds of dollars, but do not deliver on their promises.
If you are thinking of paying someone to "repair" your credit, remember this:
No one can require a credit bureau to remove accurate negative information before the legal time is up. There are no "loopholes" or laws that credit repair companies can use to get correct information off your credit report. No credit repair company can do anything you can't do for yourself. A "money-back guarantee" does you no good if the company has gone out of business or refuses to make good on its refund promise. The only way to "repair" bad credit is with good credit practices over a period of time. Some credit repair companies promise not just to clean up your existing credit record, but to help you establish a whole new credit identity. Remember, it is illegal to make false statements on a credit application or to misrepresent your social insurance number. Beware of any company or method that:
encourages you to omit or lie about bad credit experience when you apply for new credit; tells you to use a new name, address, or a new number in place of your social insurance number in applying for credit; or says it is legal to establish a new credit identity.