Solutions To Credit Repair
No one erases bad information unless it’s inaccurate. Only wrong information can be changed. Accurate information remains on your credit report for seven years from the time its initially reported (ten years for bankruptcy). Even information about bills you fell behind on but now are paid will remain on your report for these time periods.
Credit repair services cannot ask for payment until they’ve kept their end of a promise. Federal law also states that credit repair services give you a explanation of your legal rights, a detailed contract written out, and at least 3 days to cancel (this applies to for-profit services, not nonprofit, banks or credit unions, or creditors themselves).
Be cautious about emails for credit services. Many unsolicited emails are fraudulent.
You can fix mistakes on your report yourself. If you were recently denied credit because of information in your credit report, you have the right to gain a free copy. Otherwise, there is a small fee, unless your specific state provides a free one each year. This is very common. It does not cost anything to question or dispute something appearing in your credit report. Follow the instructions provided by the individual bureaus. The major credit bureaus are as follows: Equifax, 800-685-1111, www.equifax.com; Experian, 800-682-7654, www.experian.com; and TransUnion, 800-916-8800, www.transunion.com. Contact all of them, as the information each has may vary slightly.
You can add your own explanation to your credit report. If there’s a good enough reason why you were not able to pay bills on time (laid off, sudden illness, etc.) or you refused to pay for something because of a legitimate dispute, give the credit bureau a short statement to include in your file.
Know that you cannot create another credit file. Fraud companies often offer to provide consumers with different tax identification or social security numbers in order to create a new credit file. This practice, called file segregation, is illegal, and it doesn’t work.
If you have credit problems, get counseling. Your local Consumer Credit Counseling Service (CCCS) can provide advice about how to build a good credit record. The CCCS may also be able to make payment plans with your creditors if you’ve fallen behind. These services are offered for free or at a very low cost.
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