Credit Repair and You

1/13/2009

Fort Worth, TX – In spite of any company's promise to 'clean up' or 'fix' your credit, no one can require a credit bureau to remove accurate and timely information. To hide accurate information, some firms try to set up a new credit record under a new social security number or company ID, a practice which is illegal.

    Accurate negative information is generally reported for seven years, including default information concerning US Government insured or guaranteed student loans, but there are exceptions:
  • Bankruptcy is reported for 10 years; and,
  • Information concerning a lawsuit or judgment can be reported for seven years or until the judgment runs out.

When information is inaccurate or incomplete, the law does require the credit reporting agency to reinvestigate any challenged matter. First, contact the credit bureau and request a copy of your credit report. If there is inaccurate or outdated information, write to the credit bureau to contest those listings. If the contested information is not verified within 30 days, it is removed. However, this may be temporary; information may reappear once accuracy is verified.

If the report is accurate, you may provide a short explanation to be included on one or more of the listings.

    Most credit reports are supplied by the three national credit bureaus:
  • Experian 1-888-397-3742;
  • Equifax 1-800-456-6004; and,
  • Trans Union Corporation Consumer Relations, 1-800-888-4213

If you have been denied credit in the past 30-60 days, the report is free. In most other cases, there is an $8 to $10 charge. For specific information, contact the credit bureau.

The Credit Repair Organizations Act, effective March 30, 1997, prohibits selling fake identity schemes, bans companies from charging advance fees, and prohibits claims that indicate a firm can remove accurate negative information from consumers' credit records. There are no loopholes or laws that credit repair companies can use to erase correct information from your credit report. The only way to repair bad credit is by using good credit practices over a period of time.

    TIPS: If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:
  • Companies that want you to pay for credit repair services before they provide any services.
  • Companies that do not tell you your legal rights and what you can do for yourself.
  • Companies that recommend that you not contact a credit reporting company directly.
  • Companies that suggest that you try to invent a "new" credit identity-and them, a new credit report-by applying for an Employer Identification Number to use instead of your Social Security number.
  • Companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity.