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Tips
for Repairing Your Credit History
Repairing
Credit on Your Own
- Start by
contacting credit agencies to get a copy of your credit report.
- If there
are errors on your credit report, you can contact the credit-reporting
agency to request an investigation.
- Contact
your lenders to renegotiate payment plans.
Repairing
Credit Using Credit Counseling Agencies
If you decide to use a credit counseling agency, the Federal Trade
Commission provides the following tips for choosing a credit counseling
agency and questions to ask regarding services and fees and repayment
plans:
- Interview
several credit counseling agencies before signing a contract.
- Before signing
a contract, check with your local Better Business Bureau, state
attorney general’s office, or local consumer protection
agency to check whether there have been complaints filed against
the company. A reputable agency will send you free information
about itself and the service it provides without requiring you
to provide any details about your situation. If the agency won’t
do this, find another agency.
- Ask questions
about services and fees and a repayment plan.
For a list of
questions to ask credit counseling agencies, check “Giving Credit Where It's Due: Choosing the Right Counseling Agency ” in the Information Booth.
The Truth
About Credit Repair
Only consistent efforts and making payments on your debts will improve
your credit.
Beware of
companies that:
- Promise to
erase your bad credit or remove bankruptcies and judgments from
your credit file. No one can have accurate information removed.
- Promise
you fast and easy credit repair. If you have bad credit, it can
take years to repair your credit legitimately.
- Offer to
create a new identity for you. If you make false statements on
loan applications, or use a fake Social Security number, you will
be committing fraud. You can also be charged for mail or wire
fraud if you use the mail or telephone to apply for credit and
provide false information.
- Want you
to pay for credit repair services before providing any service.
The company might not be legitimate.
- Will not
tell you your rights and what you can do yourself. Remember you
can order the credit report yourself. If you see errors on your
report, you can also request that the credit reporting agencies
make appropriate changes.
Keep in mind,
many states have laws that regulate credit repair companies.
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