Know Your Rights

Credit Repair Self Help

Consumers looking to have their credit reports repaired from damaging marks can find an overwhelming number of companies that are willing to help them in the process.  But do these companies actually help you and do they accomplish what you need?  The first step is to determine whether the company you are considering is a legitimate company truly designed to assist in repairing your credit or whether it is a money making scam.  In fact, the Federal Trade Commission offers certain important guidelines to how to determine that the credit repair scams are scams. Here are the guidelines according to FTC to determine whether the companies are up to no-good.

  • The company asks you to make an upfront payment even before they have done anything to repair your credit card ratings. Under the Credit Repair Organizations Act, no credit repair company can ask you to pay unless they have offered their services to repair your credit score.
  • The company is silent about your rights and what can you get through them for free.
  • The company recommends that you do not cause any communication with any of the three major national credit reporting companies directly. The scam company promises to do it itself.
  • The company straightaway claims that it can clear all negative information on your credit card, even if that information is recent and accurate.
  • The company suggests you dispute all the data on your credit report, regardless of its accuracy and the time when the report was filed.
  • Finally, the company suggests that you invent a new credit identity and a new credit report successively by applying for an Employer Identification Number instead of your social security number.

You yourself can take the necessary steps to fix inaccuracies on your credit report.  If the items on your credit report are accurate - that is, they are really your debts and the status of them are being reported correctly, you should not expect much from disputing your credit report no matter who you pay or how much.  There is no obligation on the part of the credit bureaus to remove correctly reported information. 

However, if the item is inaccurate you have rights, and you can take the steps yourself, without going into your pocket for much more than a copy cost or stamps.   According to the Fair Credit Reporting Act or FCRA, a credit reporting agency has an obligation to conduct a reasonable investigation into the claims of inaccuracies on your credit report.  In order to kick off this investigation, the credit bureaus must get a dispute from you.  This can come in the form of a letter, a phone call, or through the credit bureaus' on-line dispute systems.  We highly recommend that the dispute be done in writing through regular mail.  For advice on how to make the most effective dispute, see our website for how to dispute your credit report.

+ Add Comment1 Comment
Jacinto|Friday, May 18, 2012
Enjoyed looking through this, very good stuff, thankyou .
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