The Hazards of Credit Repair Companies

What credit repair companies claim

Credit repair companies claim they can boost your credit score by removing negative items from your credit report — including accurate items. 

However, there is no legal way to permanently remove accurate information from your credit report. While all negative items automatically fall off after 7 or 10 years, credit repair companies cannot erase truthful information permanently prior to that time.

Common credit repair company tactics

• Charging customers large upfront or monthly fees for disputing services.
• Flooding the credit bureaus with disputes to force temporary removals (credit bureaus have to remove disputed items if they fail to respond to consumers within 30 days).
• Consumers are ALWAYS notified when items come off their reports. They are RARELY told when an item is reinserted.

Credit repair warning signs

• Requests for an upfront payment or ongoing monthly payments.
• Promises to fix your credit by getting negative items off your report.
• Claims of permanently removing accurate information.
• Requests to sign contracts with no end date.

Better ways to dispute real errors with the credit bureaus

• Visit annualcreditreport.com to review your credit report.
• Dispute inaccurate information directly the credit bureaus.
• Learn how to file a dispute from the Consumer Financial Protection Bureau.

Get help from trusted sources: 

• The National Foundation for Credit Counseling 
• Financial Counseling Association of America
• National Association of Consumer Bankruptcy Attorneys