Legal Credit Repair - Ways to Improve Credit Score and Beware of Scams

Be wary of companies that advertise legal credit repair services that promise to improve credit score for you.   There are a lot of “bad apples” out there. Some may even be encouraging you to break the law. If they ask you to make false statements o­n a loan or credit application, misrepresent your Social Security number, or advise you to get an Employer Identification Number from the Internal Revenue Service under false pretenses, you will be committing fraud.

The truth is you can create a better credit record. Contact your creditors when it is clear that you are unable to make payments. If you need assistance in setting-up a payment plan and a budget, you should get in touch with a credit counseling service. There are non-profit groups in every state that offer credit counseling to consumers. These services are available at little or no cost to you. Also, ask your employer, credit union, or housing authority about no-cost credit counseling programs.

Remember your rights under the Fair Credit Reporting Act:

1. You are entitled to a free copy of your credit report under the Fair Credit Reporting Act if you've been denied credit, insurance or employment and request the report within 60 days of notice, or if you can prove that (1) you're unemployed and plan to look for a job within 60 days, (2) you're o­n welfare, or (3) your report is inaccurate because of fraud.

2. If your application for credit, insurance, or employment is denied because of inaccurate or incomplete credit information, the company to which you applied must give you the name and address of the reporting credit bureau.

3. There is no charge to dispute mistakes or outdated information o­n your credit report. Ask the credit bureau for a dispute form and submit it with any supporting documentation.

What you should also know:

1. Bankruptcy information can be reported for 10 years.

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

3. Information reported because of an application for a job with a salary of more than $75,000 has no time limit.

4. Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.

If you are not able to handle your credit repair problems yourself, try to seek out a reputable company or attorney.   The Better Business Bureau or Attorney Bar may be able to assist you in locating someone that can truly assist you.