Can you really “repair” your credit score? Sure…but… if you are considering this option and are going to hire someone to help you do it, be aware of the following:
1. If the credit repair company guarantees the removal of all negative marks on the credit report even if they are true, they are selling the proverbial “bridge”. Credit reporting agencies aren’t required to remove correct information. They are required to remove correct and negative information after a 7-10 year period. (Credit 7 years, Bankruptcy 10 years). Often, the process used to “remove” correct info will cause the credit reporting agency to remove it temporarily, but once the creditor realizes that it is gone, they will simply update the account, if they hadn’t already.
2. If the credit repair company asks you to create a new identity and thereby a new credit history…run away. This is illegal, but it also doesn’t work. You will still owe the debt and can be sued.
3. It is illegal for a credit repair company to charge you upfront fees to help repair the credit report.
In the end, remember that if it sounds to good to be true, it is. Talk to an experienced attorney about your credit report before making any serious decisions.