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Is do-it-yourself credit repair possible?

By Janet Lacey
Published: Sunday, March 18th, 2012

Credit repair of fixing your credit report and improving your creditworthiness is a complicated issue, made even more complicated by the number of different scam companies offering complete credit card solutions. The Federal Trade Commission warns users of such credit card scams as these are simply methods to siphon your money through the pretext of fees and service charges. You see them everywhere, on print media, on the tv and on the internet offering you 100% solution on your credit card problems. The Federal Trade Commission clearly states that there is no quick fix for credit repair solutions.

In fact, the Federal Trade Commission offers certain important guidelines to how to determine that the credit repair scams are scams. Here are the guidelines according to FTC to determine whether the companies are up to “no-good”.

  • The company asks you to make an upfront payment even before they have done anything to repair your credit card ratings. Under the Credit Repair Organizations Act, no credit repair company can ask you to pay unless they have offered their services to repair your credit score.
  • The company is silent about your rights and what can you get through them for free.
  • The company recommends that you do not cause any communication with any of the three major national credit reporting companies directly. The scam company promises to do it itself.
  • The company straightaway claims that it can clear all negative information on your credit card, even if that information is recent and accurate.
  • The company suggests you dispute all the data on your credit report, regardless of its accuracy and the time when the report was filed.
  • Finally, the company suggests that you invent a new credit identity and a new credit report successively by applying for an Employer Identification Number instead of your social security number.

You can yourself take the necessary steps about credit repair. To do that, first, you will have to be aware about your rights and the laws protecting your rights. For instance, According to the Fair Credit Reporting Act or FCRA, there are certain guidelines that can help you to investigate any inaccuracy of information in your credit card. You should do sufficient research on the Fair Credit Reporting Act and the Credit Repair Organizations Act.

Then, it should be the process to verify your credit report with your credit card bills and check out whether any information is represented inaccurately or not. In case you find inaccurate info and you have gathered the documents to prove your claim, then you will have to draft a letter to the credit reporting agency, noting the inaccuracy information and what should be done to rectify it. Also, you will have to communicate through legit consumer groups so that you do not again fall into an additional scam. There is already the scam from illegitimate credit repair companies. Make sure that you are including copies of documents to prove that your credit report is inaccurate so that your claim is given consideration by the lender.

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