Credit Repair Companies

Many people will use a credit repair company because they have bad credit or because they filed bankruptcy. Sometimes this may be ok for you to do, but you have to be extremely careful because there are so many scams that are out there. Be aware of your rights under the Federal Trade Commission's Fair Credit Reporting Act if you have been refused credit. This is where creditors report what you pay and don't pay on your bills. Some information could be incorrect. This is why you should ask for a free copy of your credit file within 30 days after you've been denied any kind of credit. If you wait any longer you may have to pay a small fee. Either way it's always better to be aware of what's on your credit report. It's always better to be safe than sorry.

If your looking for a local credit bureau, check your local yellow pages. Each credit bureau, will have all accurate information for seven years. If you filed bankruptcy then they can have that on file for ten years. By law they are allowed to do this. If you happen to see inaccurate information reported on your credit report, you may write the credit agency, and ask them to verify the information with your creditor. Most of the time it takes 30 days to do this. If it should take them any longer, they must drop it from your file. To have any of this done, it will cost anywhere from $15.00 to hundreds of dollars.

All of the above information can be done by a credit repair company or it can be done by yourself. If you decide to use a credit repair company, contact the Better Business Bureau. Also remember to get a written contract from the company. This way you'll get their promise in writing. So think about these choices next time you apply for a credit repair company.