Credit Repair Companies

You need to repair your credit and are wondering if hiring a credit repair company is a wise choice?

Credit Repair is a legitimate business! A federal law called the Credit Repair Organizations Act regulates credit repair activities of all credit repair organizations, companies, and agents. Use the information below and elsewhere on this site to learn more about the credit repair industry and then decide for yourself if you want to tackle repairing your credit or if you should hire a professional credit repair company.

Can credit repair companies do what they claim?

Credit laws that apply to credit repair

Additional credit protection information and laws

Up   1. Can credit repair companies do what they claim?

Yes! Legitimate credit repair companies do exist, and the good ones really can do what they claim. The problem is there are too many so-called credit repair organizations that are nothing more than scams. They take your money, do nothing to improve your credit, and usually leave you in worse shape than before you hired them. These rip-off artists give the entire credit repair industry a bad name. That’s too bad because some people could benefit from hiring the right credit repair organization.

The real secret to credit repair is an accurate credit report.  An accurate credit report means all information contained in your credit profile is correct and has not expired. However, most credit reports contain mistakes. Sometimes it is just a simple thing like an incorrect date or missing middle initial. But more often than not, they contain major mistakes – mistakes that cost you credit score points.

Things often reported inaccurately include:

  • Late Payments
  • Collection Actions
  • Charge-Offs
  • Bankruptcy Actions
  • Accounts closed by Grantor
  • Judgments and Liens
  • Lost/Stolen Credit Cards
  • Settlement of Various Debts
  • Vehicle Repossessions
  • Bank Foreclosures
  • Accounts placed in dispute
  • General negative Information
  • Wage garnishment actions

If any of the above items are being reported inaccurately, having them corrected might have a positive impact on your credit score. However, none of the above information can be removed or changed unless it is outdated or inaccurate! Accurate negative information will not be removed! 
Information, where the statute of limitations has expired, should be removed:

Up   2. Credit laws that apply to credit repair

The Credit Repair Organizations Act regulates credit repair companies.  Agents use this law to legally repair your credit by forcing credit bureaus to remove inaccurate or outdated information from your credit report. However, no one can get accurate and timely information removed from your credit reports. See Credit Repair Organizations Act

If you decide to hire a credit repair company, then you need to know that the Credit Repair Organizations Act clearly states credit repair agents:

  • cannot require you to pay until they have completed promised services;
  • cannot make false claims about their services;
  • must provide a copy of the Consumer Credit File Rights; before you sign a contract,
    See Consumer Credit File Rights;
  • must allow you three days to cancel the contract without paying any fees;
  • must not perform any services until they have your signature on a written contract and have completed the three-day waiting period;

If there are errors in your credit reports, hiring a company can save you time, money, and a lot of frustration. For a fee, good credit repair companies can “repair or clean up” your credit records, but keep in mind they do not do anything that you cannot do yourself.

Up   4. Additional credit protection information and laws

Credit Repair Organizations Act

The Fair Credit Reporting Act,