Credit Repair Companies Provide No Cure for Your Credit Ails

"Do you have bad credit? We can help" is often a claim made in advertisements by credit repair companies who state they can erase negative information on your credit report. However, only time--not miracle cures or exorbitant fees--can heal bad credit.



Unscrupulous firms often rely on a portion of the federal Fair Credit Reporting Act (FCRA) which requires a credit bureau, or credit reporting agency, to omit some information on a credit report during the time when an investigation is being conducted after a challenge has been filed by a consumer.



As a result, credit repair firms will flood credit bureaus with multiple, frivolous disputes. Fees paid by consumers who are desperate for clean credit can range from a few dollars to thousands of dollars, but the legitimate negative information is never permanently erased from a credit file by the paperwork generated by a credit repair firm.



Rather, time is the best solution to an undesirable credit history.



Federal law mandates the time periods that accurate negative information remains on a credit report. Delinquent payments are eliminated from credit reports after seven years and personal bankruptcies after ten years.



Information concerning a lawsuit or judgment against you can be reported for seven years or until the statue of limitations runs out, whichever is longer.



Credit reporting company officials estimate that about 30 percent of their workload is wasted on credit repair companies which intentionally abuse laws and policies established to protect consumers.



Credit reporting organizations will provide consumers with a copy of their credit report upon request for a small fee. In addition, free credit reports are available to persons who have been denied credit within the past 60 days.



Consumers should be aware of the following facts:



Virtually every service a credit repair firm does legally can be done by consumers themselves for free or at minimum cost.



No one can legally remove accurate information from a credit report. Only time can wipe out bad credit.



Any consumer can dispute inaccurate information at no charge. Inaccurate information will be changed or deleted free of charge. Credit reports contain an easy-to-complete dispute form to help consumers who disagree with the information.



There are no miracle cures for bad credit.



Remember that lenders are in business to lend money and want to say "yes." However, their livelihood depends on extending credit only to consumers who repay their debts.






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