Offers to help debtors clean up their credit seem to be everywhere. Unfortunately, many of these offers are scams promoted by companies that are out to make a quick buck. Fortunately, if you have credit problems, you can perform a number of actions to improve your credit for no cost.

Avoid Scams

One of the most important things you can do is recognize a fraudulent offer of assistance. According to the Federal Trade Commission, the following traits are signs that a company may be trying to scam you and should be avoided: The company insists that its fee be paid before it provides any services; the company refuses to tell you how you can help yourself at no cost; the company requests that you not contact any of the major credit reporting agencies. Also, if the company says it can eliminate accurate information from a credit report or asks you to dispute accurate information in a credit report, the offer could be a scam.

Evaluate Credit Reports

The Federal Trade Commission advises that people attempting to improve their credit should obtain copies of their credit reports from one or all of the three major credit reporting companies: Equifax, TransUnion and Experian. You can request a free copy of your reports once annually from AnnualCreditReport.com. Once you obtain the credit report, check it for inaccurate negative items. If inaccuracies are found, challenge them by writing a letter to the credit reporting company. Under the Fair Credit Reporting Act, once the company receives the letter, it has 30 days to investigate the disputed item. If the credit agency finds that the disputed information in the report is inaccurate, it will remove the item. Even if the credit agency finds that the item is accurate, you can request that a record of the dispute be placed in the credit report. A credit report should also be checked for untimely negative items. By law, most negative information, other than bankruptcy, can only remain in a credit report for seven years. If negative information on a report is older than this, in most cases it must be removed.

Seek Reputable Credit Help

After you check your credit report for inaccurate and outdated items, you may need to seek credit counseling for further assistance. Many credit counseling agencies can help you with making timely payments, keeping to a budget and modifying other behaviors to improve your credit. Many of these agencies offer counseling at little or no cost. The National Federation for Credit Counseling website can help you find a reputable local credit counselor.

Source:

Federal Trade Commission: Credit Repair: How to Help Yourself

Federal Trade Commission: How to Dispute Credit Report Errors

National Foundation for Credit Counseling: FAQ

More Information:

Federal Trade Commission: Building a Better Credit Report