It's happened to so many of us; we get behind in our payments and suddenly our credit score starts dropping. But as ABC2 News Joce Sterman explains, turning to those so-called credit repair companies won't bail you out of trouble.It's so easy to fall into the trap, in these tough times, many of us end up using plastic to get by. But when we can't keep up with the credit card payments and other bills, our credit score spirals downward. And when it comes to repairing your credit, many ads make it sound effortless, with companies claiming they can clean up your record. But Angie Barnett with the Better Business Bureau says, "Nobody can do that. You really can't."
The BBB says no one can remove negative information from your credit report if it's accurate and only time can undo the damage. Still, credit repair firms persist, claiming they can get rid of everything from late payments to bankruptcies. And many charge you, often upfront, for their service. But according to a message we found on the Federal Trade Commission's website, that's illegal. In that message, Bureau of Consumer Protection Director Eileen Harrington warns consumers, “If a company tells you for a fee they can improve your credit for you, don't fall for it. It's a scam. First of all, it's against the law for any company to take your money before they improve your credit record."
When it comes to making those improvements, the BBB warns some scam companies may try one tactic to make it look like they've helped. They'll do a blanket dispute for every blemish on your credit report, so those items will come off. But the solution is only temporary according to Barnett, “It's lifted for 30 days. But on day 31, it's back on there if it is a valid blemish on your credit report."
It's a fake out of sorts that the scam companies are hoping you'll fall for. But the truth is the work these companies want big money for is something you could try on your own. All you need to do is get free credit reports from the three reporting agencies. The BBB says errors are common, so you need to check out your report and if you find a mistake, dispute it on your own. That method might save you the money you'd spend for so-called credit repair and help you pay down the bills that will truly help rebuild your credit in the long run.
