Online Credit Repair Secrets

How do these credit raising/ repair services work? is it legal?

Public Comments

1. Most of them are technically legal -- but do not help consumers. The Federal Trade Commission (FTC) has been fighting these services for years. (See the two sources, below.) Basically, the FTC says that these services charge high fees but cannot possibly perform what they promise. I would definitely stay away from them. If you feel you have to go to one of them be sure not to give them ANY money before they have actually performed ALL services they promised!
2. Avoid credit repair agencies that charge a fee to improve your FICO score by removing negative, but accurate, information from your credit reports. No one can force credit reporting agencies or lenders to remove accurate information from a credit report. Credit repair companies often take your money without delivering what they promise, or provide only temporary improvements of your score, sometimes by removing accurate information that will reappear later. Here is a link to FTC approved counseling agencies. http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm Govt approved credit counseling agencies.