Credit Repair

You sees the advertisements in newspapers, on television and the Internet and hears them on the radio and gets fliers in the mail. Also you may receive calls from telemarketers offering credit repair services. They all say the same:

• Credit Problems ? No problem!
• We can erase your bad credit - 100% Guarantee
• Legally Create a new credit identity!
• We can remove from your credit record bankruptcies, judgments, liens, and bad loans, forever!

The Hoax

Every day, companies appeal to consumers with poor credit histories. These companies promise in exchange for a fee, to fix credit record so that this way you can get a loan for a car, a home mortgage, insurance or employment. The truth is that they can fulfill their promise.

Warning Signs

If you decide to respond to a credit repair offer, beware of companies that:

• Want you to pay for credit repair services before any services are provided.
• Do not tell you your legal rights and what you can do yourself for free.
• We recommend that you do not contact the credit reporting agency.
• Suggest that you try creating a "new" credit report by submitting an application for an Employer Identification Number (Employer Identification Number *) instead of using their Social Security number.
  
• You are advised to dispute all the information in your credit record or take any action that may seem illegal. Such as creating a new credit identity. If you follow illegal advice and commit fraud, you may be prosecuted.

The Truth

No one can legally remove accurate negative information from your credit history. But the law allows you to request an investigation of the information in your credit history. Everything a credit repair clinic can do for you legally, you can make yourself for a low cost or no cost. According to the provisions of the Fair Credit Reporting Act:

• You are entitled to a free copy of your credit report if denied credit, insurance or employment within the last 60 days.
• You can dispute erroneous or outdated items for free.
• Clearly identify each item in his report dispute, explain why you dispute the information and request a reinvestigation.

When the reinvestigation is complete, the credit bureau must give you written results and must give you a free copy of your report if the result of the dispute involved a change.

You also should tell the creditor or other information provider in writing that you are disputing something on your credit history. If the reinvestigation does not resolve your dispute, have the credit reporting agency to include its version of the dispute in your file for future reports. Remember that there is no charge for a reinvestigation.

Have You Been Victimized?

Many states have laws strictly regulating the credit repair companies. The Contact your local consumer protection or Attorney General in your state. Many attorneys general offices have hotlines with free access for consumers. Consult your local phone book.

Need Help? Do not despair.

If you can not resolve your credit problems yourself or need additional assistance, can contact a credit counseling service. There are nonprofit organizations in every state that counsel consumers in debt. Also, sometimes the counseling programs are nonprofit operated by universities, military bases, credit unions and housing authorities.

You are entitled to one free report per year if you certify in writing that (1) is unemployed and plan the search for a job within the next 60 days, (2) you receive welfare, or (3) your report is inaccurate by because of fraud. Otherwise, a credit reporting agency may charge up to $ 9.00 for a copy of your credit report. You must contact each of these agencies to request a copy of your report.