Spot the scams when fixing your credit

If there’s information on your credit report that’s correct but not so great, it can make it harder to get credit with good terms. But there are things you can do yourself for free to help fix your credit. Credit repair companies also charge to do the same things. Before you consider paying, though, know the rules these companies have to follow — rules dishonest companies and scammers often break.

Before they do any work for you, credit repair companies have to write up a detailed contract that explains your legal rights (like your three-day right to cancel without any charge) and the total cost of their services. It’s illegal for credit repair companies to lie about what they can do for you, charge you before they help you, or ask you to lie on credit applications. Credit repair companies also can’t legally remove negative information from your credit report that’s correct and up to date.

Here are some ways to help fix your credit:

• Fix mistakes in your credit reports. Get your free credit report from AnnualCreditReport.com. If you see a mistake, write to the credit bureau and the business that reported the information. For more information, read Disputing Errors on Your Credit Reports.
• Pay your bills on time, pay off debt, and don’t take on new debt. It takes time to improve your credit. If there’s accurate negative information in your credit report, credit repair companies can’t remove it for you legally. It’ll go away with time.
• Find real help. Your local credit union, university, or military personal financial manager might be able to recommend a non-profit credit counseling program that can help.

Read Fixing Your Credit FAQs to learn more about credit, credit repair, and how to help improve your credit.