Quick Fix Credit Repair: What to Know to Protect Yourself and Your Credit Report

Today, anyone who has tried to buy furniture, an automobile, or especially a house, knows how important a good credit score is. A difference of only 100 points on your FICO credit score can determine whether you qualify for an A or B loan, which can be the difference between several thousands of dollars. In our hurried society, most people look for a quick fix to repair their credit reports to get the best deal for their money. Be warned, however, there are several scams that offer a quick route to change your credit score. At best, these offers are shady, and at worse, some are downright illegal.

First, remember the old adage, “if something sounds too good to be true, it probably is.” This is especially true with quick fix credit repair. Your credit report is a snapshot of your past credit performance. Companies reporting to the credit agencies are required to be as accurate as possible, and mistakes do happen. However, if you have made credit mistakes, no law firm or company can have those items removed from your credit report. In general, bad credit remains on your report for up to seven years, with Chapter 7 and Chapter 13 bankruptcies reporting up to ten years. You can, however, write to the three major credit reporting agencies, Equifax, Experion, and TransUnion, and have a letter attached to your credit file explaining the circumstances surrounding the bruises on your credit report. This does not change your credit score, but at least gives potential creditors an explanation they can take into consideration. If there are true inaccuracies on your credit report, you can write to the three major credit reporting agencies and dispute these items. This is something you can do yourself and does not require a third party. www.Equifax.com is a good place to look for further information regarding this process, and is very user friendly.

Second, there is another credit repair scam that offers to start you over with a “clean slate.” In this quick fix, the scammer suggests that you get either a new Social Security number, or tax I. D. number, which can be mistaken for a Social Security number. In either case, you have created a new credit identity, and therefore fixed your old credit report by basically assuming a new identity. Be warned, this scam is not only a bad idea, but it is fraud. If found and convicted, any money you saved by fixing your credit would likely be spent in legal fees.

Your credit report plays a vital part in determining how potential creditors will determine your creditworthiness. Inaccurate information can and should be corrected, however there are no short cuts to get accurate negative credit information removed. In conclusion, there are legitimate and legal means to make corrections to your credit report. Don’t be taken in by someone claiming a quick fix for your credit report. You as a consumer have the ability to do this yourself without resorting to a quick fix credit repair scam. Look for future articles from this author for tips on improving your credit as well as information on debt consolidation scams, budgeting, and other money stretching articles.