(NAPS)—Every day, companies
promise consumers who have poor
credit histories that, for a fee,
they’ll clean up their credit report
so they can get a car loan, a home
mortgage, insurance or even a job.
The truth is, these companies
can’t deliver an improved credit
report using the tactics they pro-
mote. It’s illegal: No one can
remove accurate negative infor-
mation from your credit report. So
after you pay them hundreds or
thousands of dollars in up-front
fees, you’re left with the same
credit report—and a lot less
money.
Indeed, attorneys for the Fed-
eral Trade Commission, the
nation’s consumer protection
agency, say they’ve never seen a
legitimate credit repair operation.
The fact is, there’s no quick fix for
bad credit. The only legitimate
credit repair starts with you—and
it takes time and a conscious
effort to pay your debts.
Recognizing A Credit
Repair Scam
If you see a credit repair offer,
here’s how to tell if the company
behind it is up to no good:
• The company wants you to
pay for credit repair services
before they provide any services.
Under the Credit Repair Organi-
zations Act, credit repair compa-
nies cannot require you to pay
until they have completed their
promised services.
• The company doesn’t tell you
your rights and what you can do
for yourself for free.
• The company recommends
that you do not contact any of the
three major national credit report-
ing companies directly.
• The company tells you they
can get rid of most or all the nega-
tive credit information in your
credit report, even if that informa-
tion is accurate and current.
• The company suggests 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 Secu-
rity number.
• The company advises you to
dispute all the information in your
credit report, regardless of its
accuracy or timeliness.
To learn how to improve your
credit and find legitimate
resources for low- or no-cost help,
see Credit Repair: How To Help
Yourself at f