Wouldn’t it be great if you could pay a couple of bucks to make your credit woes disappear? Well, there’s an entire industry out there that claims to do just that. In her video above, Erica Sandberg, contributor to Go Banking Rates, outlines why this may not be your best option. Here’s why:
1) You Can Repair your Own Credit for Free
According to the Fair Credit Reporting act, you have the power to remove any erroneous, duplicate or old item on your credit report. It’s a simple process, and one that can be handled between just yourself and one of the three credit bureaus. No third party is needed.
2) Below-the-Line Organizations Will Try to Charge an Upfront Fee
The Credit Repair Organization Act states that credit repair companies cannot charge you a fee until after they perform an agreed-upon task. If a credit repair company states that they need money upfront, run.
3) Be Wary of a ‘New Credit Report’
Another ruse offered by shady credit repair companies: Offering you a new credit report under a different social security number. Even though this is completely illegal, it does happen. So if a credit repair company alludes to this, that’s your cue to leave or hang up.
You may say, “But my credit is really bad, and the report is all true!” In that case, it’s best to just learn from your mistakes and move on. Concentrate on building good credit for the future instead of ruminating on the past. After a few years and conscious effort, you can enjoy the perks of good credit.