There are a lot of claims out there regarding credit repair. Before paying someone making dubious promises, take these steps to help yourself.

Do it Yourself Credit Repair

Be especially careful if a company is asking you to pay before they perform their services. This is specifically forbidden under the Credit Repair Orginizations Act. Don’t work with a company that claims they can get rid of all negative information in your report, even if the information in the report is correct. Beware of companies that try to convince you to dispute negative information that is true. This can land you in legal trouble, even if you are following their advice it is illegal and may be considered fraud.

Is the information on your credit report accurate?

Remember no one can legally remove accurate and timely information that has found it’s way onto your credit report. However there are often mistakes and that is why it is important to keep an eye on your credit reports. There are three national credit reporting companies (Equifax, Experian, and Transunion) and they are all required by law to provide you with a free credit report once a year if you request it. You can go to annualcreditreport.com to get yours or call 1-877-322-8228.

If you find errors on your report it is free to dispute it. That is why paying a company to do it for you might not be the most money-wise decision.

The first step in credit repair

Send the credit reporting company a copy of your report with the items you are disputing circled. Include a letter that explains which claims you are disputing and the reasons. Request that it be deleted or changed and include copies of any documentation you may have.

The credit reporting company has thirty days to investigate. When the investigation is complete they must provide you with the results.

The second step in credit repair

You will also need to contact the company that has placed the information on your report. Tell them you are disputing the claim and provide them with copies of any documentation you have.

Your credit is important and it is a great idea to keep an eye on the information that is in your reports. It can impact your finances in a multitude of ways, you could be denied a home loan, you may pay more for insurance or have to pay more for a car loan. Make sure the information in your reports is accurate before applying for a loan. It could save you hundreds, thousands or even tens of thousands of dollars over the course of your loan. This should be the first step you take before applying for a loan and since it is free there is no reason not to take advantage of it!