Credit repair companies are organizations that work with the consumer to repair their credit histories. These companies can help dispute older charges and incorrect information on your credit report. They follow up on those reports to ensure that the errors do not reoccur.
These companies cannot do anything that you can’t do yourself already. Unlike correcting computer issues, a special recovery mode that allows you to revert your computer to an earlier working state does not exist.
No company can remove negative marks on your report if the charges are accurate and verifiable.
Who doesn’t want a lifeline when they’re drowning in debt? Even though credit repairing companies are protected under federal law, make sure to vet the organization before money or information is exchanged. Many appear to be scams that masquerade as reliable companies.
Tips to avoid this CPN scam.
There is no such thing as a “new credit identity”, so be careful if a company is offering this service
No company can remove negative information on your report if it’s verifiable and accurate
Some companies will ask for your Employer Identification Number (EIN) instead of your Social Security Number (SSN). These two numbers are not interchangeable and this will not help with your credit report!
Under the Credit Repair Organization Act, it’s illegal for credit repair agencies to collect a charge from their client before performing the services.
Similar to the “new credit identity” some may promise you a new identity by issuing you a credit privacy number (CPN), or also known as a consumer profile number, credit protection number, and consumer profile number. CPN is a nine-digit number that is similar to your social security number. Reports find that some of the CPNs sold were social security numbers belonging to children. According to the Office of the Inspector General, CPNs are not legitimate and therefore are not recognized by the government.
There is no legal way to clear off your credit history and start new if the information on there is accurate. Negative information on your report is not permanent, though. As time goes on, the negative information will be removed from your credit report, usually around seven years. While you build more positive information on your credit history, the older negative information will have less of an impact on your credit score. Rebuilding your credit score can take some time. The best method to rebuild credit is to pay your credit card bills and loans on time and to stay below 30% usage of your credit. The lower the better! Following these two tips and given enough time, your credit score will fix itself.
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