Each year, you are entitled to a free copy of your credit report (not including your credit score) from each of the credit bureaus. It does not require a membership for a credit-monitoring service or any form of payment to receive this report. One must simply go to www.annualcreditreport.com and answer some identification questions to access the report. There will be offers for credit monitoring and a credit score, from each of the bureaus, but these purchases are not necessary to obtain the report.

If a company takes adverse action against you, involving credit, such as refusing to provide a loan that was applied for, you can also obtain a free report. The notice of credit denial, by law, should include the information you need to obtain that extra credit report. You can also obtain a free report if you are unemployed and looking for work, on welfare, or have been the victim of identity fraud. Continue reading “The Facts about “Credit Repair”” »

The Federal Trade Commission warns consumers of the many “credit repair” scams being offered across the country by way of internet advertising, postcards, newspaper inserts, flyers, and even radio ads. Because of the pervasiveness of these many fraudulent companies, the Credit Repair Organizations Act was recently signed into law to protect consumers.

Some so-called credit repair organizations have a product to sell, a service in which they help a consumer identify and dispute false information on a credit report. However, this is something that any individual can do for himself or herself without cost. That being said, some may prefer the convenience of working with a third party to help get it done.

If you are considering working with a credit repair company, make sure that you understand your rights under the Credit Repair Organizations Act. You are, first of all, entitled to receive a copy of the “Consumer Credit File Rights under State and Federal Law” before you sign any contract. Continue reading “The Credit Repair Organizations Act” »

Driving down the road, an ad on the radio lets you know that you don’t have to live with bad credit. The ad states, “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!” The announcer says you can erase your bad credit information, or that you can create a new credit identity, “legally.”

Most often, these advertisements are related to some sort of scam, according to the Federal Trade Commission (FTC). The FTC states that consumers should protect themselves from such fraudulent companies and take advantage of the annual free credit report to monitor and manage their own credit reports. Continue reading “How to Recognize a Credit Repair Scam” »

Despite many advertised claims that negative items, like liens and bankruptcies, can be erased from your credit, the only way to “repair” your credit is to eliminate false or fraudulent items on your credit. If you have accurate negative information on your credit report, only time and good payment practices will erase it.

When you review your credit report, which can be obtained once without cost from each of the credit bureaus annually, check for any inaccuracies. If you find something amiss, you can dispute it for free. Each company has a procedure for writing a letter and mailing it in to dispute a credit item. Continue reading “Do-It-Yourself Credit Repair” »