Stay Alert – Beware of Fake Credit Repair

Using advertising or phone calls, credit repair scammers target financially distressed consumers who are having credit problems. These operations lure consumers to purchase their services by falsely claiming they'll remove negative information from credit reports — such as bankruptcies, liens, and bad loans — even if that information is accurate. They may also promise to completely erase a bad credit history.

Desperate consumers eager for a quick fix that will remove negative marks from their credit history and increase their credit score may be convinced to make a large upfront payment for credit repair. But sadly, they'll typically receive little or nothing in return and only go deeper into debt.

It's important to note the following:

• Nobody can remove legitimate information from your credit report. Delinquencies and defaults stay on it for at least seven years.
  
  
• Legitimate debt repair companies cannot require upfront payment by law.

If your credit report has inaccurate information, you can repair it on your own by closely reviewing your credit reports and disputing inaccuracies. You can get your credit report for free from each credit bureau at AnnualCreditReport.com.