By Michael Rupured
University of Georgia
Only serious effort, time and a good debt-repayment plan can help
repair bad credit. Unfortunately, many companies want people to
believe otherwise.
These companies make false claims about credit repair. People
believe these claims, pay the companies money and find themselves
with the same bad credit.
In many cases, the credit-repair company may encourage you to
commit a crime by asking you to create a federal ID number.
Basically, they’re asking you to create a new identity, which is
illegal.
Targeting desperate people
Credit-repair companies target people who desperately want a car,
a house, insurance or even a job but have bad credit. These
people are lured by ads claiming, “We can erase your bad credit
— 100-percent guaranteed.”
They wrongly claim they can erase information from your credit
report.
If you feel you need to seek repair for your bad credit, keep in
mind:
- Credit-repair companies are not allowed to make false claims
about their services. - They can’t charge you until services are complete.
- They can’t perform any services until they have your signature
and have completed a three-day waiting period. - Inaccurate information can be removed at no cost by reporting
the error to the credit-reporting agency. - It’s illegal to create a new identity to get credit.
- Sometimes self-help may be the best option.
There is a simple, free solution
The secret to improving your credit rating is simple and free.
First, pay your bills on time. Next, report discrepancies to the
credit bureau, reduce the amount you owe and close unused lines
of credit.
And remember to get a copy of your credit report at least once a
year. You can do so by contacting the three national credit
bureaus: Equifax, 1-800-685-1111; Experian, 1-888-397-3742; and
Transunion, 1-800-916-8800.
In some states, including Georgia, you can request two free
reports a year from each bureau.
