How to Fix My Credit With a Credit Repair Company

The Fair Credit Reporting Act protects consumers from credit bureau mistakes by letting them dispute inaccurate information, according to the Federal Trade Commission. This law is often used to fix bad credit because it covers virtually any mistake. Even a misspelled name gives grounds to challenge an entry. There is no cost to fix your own credit because disputes are free, but credit repair firms will do the clean-up for you if you would rather pay than do the work yourself.

Instructions

1

Ask friends, family members and co-workers for a referral to a good credit repair company. The FTC warns that many fraudulent credit repair firms advertise in spam emails, postal mailers, pop-up ads and phone calls, making extravagant claims that they will not fulfill. They may even offer fake testimonials. Find companies that performed successfully for people you personally know.

2

Contact potential credit repair companies and ask how much they charge and when they expect to receive their fee. Drop a company from consideration immediately if it states that it wants advance payment. The FTC explains that credit repair firms are forbidden by the Credit Repair Organizations Act from collecting payment until they perform their services.

3

Ask potential companies how they will fix their credit. The FTC advises that legitimate companies do the same things you could do on your own, and they should explain this to you. They should pull your credit reports, scrutinize them for small errors in negative items that make them disputable and file disputes with the credit bureaus. Any company that advocates disputing every bad entry, even if there is no mistake, or establishing a new credit identity, is unscrupulous and can get you into legal trouble.

4

Sign a clear agreement with the credit repair firm of your choice. It should spell out exactly what the company will do, when it expects to complete the process and how much you will pay when the services are completed. Credit bureaus are obligated to investigate disputes within 30 days, according to the FTC, so the repairs should be completed shortly thereafter.

5

Study your initial credit reports before the credit repair company starts its process and compared them to updated copies when it is done. The credit bureaus send post-dispute reports and explanations of any changes. Make sure the repair firm did its job before tendering payment.