consumerbrief
Credit Reports &
Credit Repair
You have seen ads, billboards and TV commercials where
credit repair companies promise to “erase bad credit.”
Typically they charge $50 to help you, but frequently they
do nothing to help before taking your money and
disappearing.
Under the New Jersey Fair Credit Reporting Act,
consumers are entitled to a free credit report annually.
Federal law now also provides consumers with a toll-free
number and Web site to obtain a free credit report from
all three national credit agencies by making one contact:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, Georgia 30348-5281
www.AnnualCreditReport.com
877-322-8228
IF YOU HAVE A CREDIT PROBLEM, KEEP THIS IN MIND:
1. Accurate negative credit information cannot be
erased. If a credit repair company tells you that it
will be able to remove negative information from
your credit report, they are not telling you the truth.
If you have a poor credit history, the only thing that
will improve your credit report is time.
2. It is illegal to hide bad credit. Some credit
repair companies will say they can “hide” bad
credit by helping you establish a new credit
identity. They will offer to create a new credit file
for you with a fake Social Security number. Don’t
do it! This is fraud and it is a crime.
3. You can rebuild your own credit record.
Contact your creditors when you realize you
cannot make scheduled payments. If you need help
working out a payment plan and a budget,
contact your local credit counseling service.
Before using a local credit counseling service find
out if the counselors are certified, how much the
services cost and if the agency is accredited. Also,
check with your employer, credit union or
housing authority for no-cost credit counseling
programs.
If you decide to seek assistance from a credit
repair company, you are protected under the
federal Credit Repair Organizations Act.
■ A credit repair company cannot take money from
you before services are completed.
Revised 04/07/06
■ Before you sign a contrac