No one erases bad information unless it’s inaccurate. Only wrong information can be changed. Accurate information remains on your credit report for seven years from the time its initially reported (ten years for bankruptcy). Even information about payments you fall behind on but now are paid in full remain on your report for the same period of time.
Credit repair services can’t ask for payment until they’ve kept their promises. Federal law also requires credit repair services to give you a explanation of your legal rights, a detailed written contract, and three days to cancel (this applies to for-profit services, not to nonprofit organizations, banks and credit unions, or the creditors themselves).
Be cautious about emails for credit services. Many unsolicited emails are simply frauds.
You can fix mistakes on your report yourself. If you were recently denied credit because of information in your credit report, you have the right to gain a free copy. Otherwise, there is a small fee, unless your specific state provides a free one each year. This is very common. It does not cost anything to question or dispute something appearing in your credit report. Follow the instructions provided by the individual bureaus. The major credit bureaus are: Equifax, 800- 685-1111, www.equifax.com; Experian, 800-682-7654, www.experian.com; and TransUnion, 800-916-8800, www.transunion.com. Contact all three, as the information each has may vary.
You can add an explanation to your report. If there is a good reason why you weren’t able to pay bills on time (job loss, sudden illness, etc.) or you refused to pay for something because of a legitimate dispute, give the credit bureau a short statement to include in your file.
Know that you cannot create another credit file. Fraud companies often offer to provide consumers with different tax identification or social security numbers in order to create a new credit file. This practice, called file segregation, is illegal, and it doesn’t work.
If you have credit problems, find a counselor. Your local Consumer Credit Counseling Service (CCCS) can give you advice about how to improve your credit record. The CCCS may also be able to make payment plans with your creditors if you’ve fallen behind. These services are offered for free or at a very low cost.
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