ABA Family Legal Guide

Consumer Credit

Credit Records

Maintaining a Good Credit Record

What is the story behind companies that advertise their abilities to repair faulty credit histories? They sound too good to be true.

These credit repair clinics can help you review and update your credit record and report. However, their fees could be as high as $1,000, whereas you can deal directly with a credit bureau on your own. If your credit report has an error, you may correct it yourself for free or at very little cost. If the information in your credit report is accurate, only better management of your debts can offset the negative record, and only the passage of time can remove it. Be very suspicious and careful if a credit repair clinic promises that it can remove accurate records of bankruptcy and bad debts from your credit record or if it promises to get you credit. Credit repair organizations are regulated by federal and by some state laws, and federal law prevents a credit repair company from receiving any money from you before it has completed its services. If a credit program sounds too good to be true, it probably is.