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Educational Consumer Tips

Credit Repair

Author: Better Business Bureau
Published:
Category: Finance

“Credit problems? No problem!”
“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”
“We can erase your bad credit — 100% guaranteed.”
“Create a new credit identity — legally.”

If you hear these claims; they’re very likely red flags. The FTC, (Federal Trade Commission) says they’ve never seen a legitimate credit repair company making those claims and the fact is there’s no quick fix for your credit. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.

Consumers who want to lower their credit card interest rate should be cautious when a company solicits them by phone to do it for them. No one can legally remove accurate negative information from a credit report. You can ask for an investigation of a disputed entry yourself by contacting the credit reporting agencies. 

BBB Advises consumers to keep in mind the following information when being solicited for this service:

•Many of the services offered may be illegal or are services consumers can do on their own for free by contacting their credit card company direct.

•Upfront fees for lowering your rates may be disguised by "kits" or "coaching" offered by companies promising to lower interest rates. 

•Be cautious of companies that advise you to stop payment or contact with your credit card company or another lender.

According to the Credit Repair Organizations Act, a company cannot charge you until it has completed the promised services. For additional tips consumers may wish to contact the FTC at www.ftc.gov. To check on a company soliciting you or to file a complaint; search for the company’s BBB Business Review on www.bbb.org.