How to Use Credit Repair Services

Many people are in debt and have less than perfect credit. Often they turn to credit repair services that claim to be able to remove negative information from their credit reports. This is illegal, yet companies continue to make these claims. If you plan to use credit repair services, follow these steps to ensure you stay within the law.

Difficulty:

Moderately Easy

Instructions

1. Obtain a copy of your credit report from each of the three major credit reporting companies: Experian, TransUnion and Equifax. You are entitled to one free copy per year of your credit report.

2. Look over your credit report and confirm all of the transactions listed. Check for fraudulent reports and any negative reports. Make sure the negative reports are accurate by comparing them with your own records.

3. Become familiar with the Credit Repair Organizations Act. A credit repair company is legally required to give you a booklet with the details of this act explained. The act is to protect consumers from being taken advantage of by credit repair services.

4. Explain any false or negative charges on your credit report to your credit repair service. They should be able to help you remove all false charges from your records. Accurate negative charges cannot be legally removed by credit repair companies.

5. Pay the credit repair service only after they have removed any inaccurate reports on your credit report. You don't have to pay them before they do this or if they do not succeed in getting them removed.

Tips & Warnings

• Avoid credit repair services that ask for money upfront or if they suggest using a different identity for credit.