Beware of credit repair companies. There are many things you can do
on your own to "fix" your credit or to rebuild your credit.
BEWARE OF THESE COMMON CLAIMS MADE BY CREDIT REPAIR COMPANIES
"We can erase bad credit"
The truth is that no one can erase bad credit information from your
report if it is accurate.
"Only we can remove old or inaccurate information"
The truth is that if there are legitimate errors on your report or information
that is old, you can correct the report yourself without paying a lot of money
to one of these companies.
"Legitimate errors" means that the information is inaccurate, not
just that it is information you don't like.
"Old information" means credit information older than 7 1/2 years,
or bankruptcy information older than 10 years.
"The information on your report is accurate but we'll erase it anyway"
The truth is that if this means lying to the credit reporting agency,
it is illegal.
WHAT CAN I DO ON MY OWN TO GET AND KEEP GOOD CREDIT?
KEEP TRACK OF YOUR CREDIT HISTORY BY ORDERING YOUR REPORT
1. There are three major credit reporting agencies and many other small ones.
You should order your report from at least the "Big Three." These
companies are:
---Equifax
---Experian (formerly TRW)
---Trans Union
These agencies may charge you up to $8.00 for the report. The report is free
if you have been denied credit within the past 60 days. You can also get one
free report in any 12 month period if you are unemployed and will be applying
for a job within the next 60 days, if you are on welfare, or if you have reason
to believe that your report contains inaccurate information due to fraud.
To order from the "Big Three" companies, you should send a written
request which includes your full name, date of birth, social security number
and residences for the past five years.
You should at least look for the following possible problems:
ARE THERE ANY ERRORS?
If you think you see an error, you should fill out a dispute form or write
a letter explaining what you think is wrong. Attach any supporting evidence.
The agency must then investigate your report and get back to you usually within
thirty days. (They can decline your request only if they decide that it is frivolous.
They must notify you of this decision).
The agency must notify you within five days of completing the investigation
and must include a copy of your credit report if it has been revised.
If the problem is not resolved, you may file a written statement of up to 100
words explaining your side of the story.
IS THERE ANY OLD INFORMATION?
Look for:
---Credit information older than 7 1/2 years
---Bankruptcy information older than 10 years
This is considered "old" information and should no longer be on your
report.
NO. Sometimes people get into trouble with credit. These problems will usually
show up on your report. The best thing to do in this situation is to start rebuilding
your credit. And if you apply for credit, shop carefully. Try to get the best
terms possible.
WHAT IF I FIX EVERYTHING AND I'M STILL TURNED DOWN FOR CREDIT?
It is possible that you are being illegally discriminated against. It is against
the law for creditors to base decisions to extend or deny credit on sex, age,
race, color, religion, national origin, marital status, receipt of public income
or assistance or the exercising of your rights under the credit laws.
You should consult an attorney if you think this has happened to you.
and NCLC