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If your credit report tells the truth about how you have handled your money, then only time and paying your bills on time will fix it. 

People who say they can fix a bad credit report may not be telling the truth.  Do not be fooled into paying them money. 

How Do I Know If Someone Trying To Cheat Me?

Here are ways to tell:

Dishonest credit repair companies may call themselves:

• Credit Advisors
• Credit Correction Services
• Credit Consultants

They may say that they can remove

• Charged off accounts
• Collection accounts
• Judgments
• Tax liens
• Repossessions
• Bankruptcies

They may say things like,

• "Turned down because of bad credit? We can help!"
• They say they can fix your report in less than a year. 

The truth is that they cannot guarantee the truth will not show up on your report. 

The truth is that bankruptcies stay on your report for 10 years.  Other bad facts stay for 7 years.

How Much Will They Try to Get Me to Pay?

Watch out! 

• They may charge hundreds or even thousands of dollars to fix bad reports.

Fixing a report is not magic.  It does not cost a lot of money.The truth is, is cost nothing to fix credit reports.  You can do it yourself and for free.

What Else Should I Look Out For?

• A credit repair place may "guarantee" that your report will be fixed.  

Many times, they just take your money and leave you with a bad report.

• They may promise to get you a credit card. 

If they do, it is likely to be what called a secured card. A secured card is one that makes you keep a couple hundred dollars in hte bank.  This way, if you don't pay your bills, the money can be taken from your account. 

A secured card may also ask you to pay an application fee of more than $200.00.

• They may get you a card that allows you to buy things from a store you've never heard of. 

The store may sell things at super high prices.  They may make you pay some money up front.

• They may tell you to call a 900 number to get a card. 

900 numbers can cost $2 or $3 dollars an hour.  Calling them for 10 minutes can cost $20 to $30 dollars.

Is There Anything They Do That Is Against the Law?

Yes. 

• Some credit repair people try to get you credit cards using other people's credit reports.  This is a crime.
• Some credit repair companies have been shut down for these practices.

Where Can I Get Help?

Help yourself. 

• Do not give money to credit repair people if you do not trust them.
• Fix your credit report yourself and do it for free.

[See Good Credit: Why You Need It And How To Get It]

• The truth is if you want a credit card, including a secured one, you can apply for free yourself.

For a list of secured credit card banks that don't charge application fees, call Consumer Action at (415) 777-9635 or (213) 624-8327

What If One of These Companies Steals My Money?

If one of these companies steals money from you, you can complain to the Federal Trade Commission.  If you need to file a complaint, see [FTC Consumer Complaint Form].

                    OR

You can send it to:

        FTC Credit Practices Division

6^th St. N.W.   

        Washington, D.C. 20580

You can also contact your local attorney general's office or consumer protection agency.