We have all seen them: newspaper and internet ads offering Bad Credit Report Repair, proposing to erase bad credit for you.
For a substantial fee, usually payable in advance, these credit repair clinics say they will arrange to have negative credit information removed from your credit record. Can they really improve your bad credit history? Or, are they scams?
Bad credit report “repair” – how do they do it?
In many cases, the credit repair agency will contact the credit bureau and request that they prove you owe the money. The credit bureau would then contact the creditor to verify the current status of the account. If your account is old, it may not appear in the current records of the creditor, resulting in the credit bureau removing it from your credit report.
However, the bad credit report repair achieved in this way may only be temporary. The creditor may then investigate further, and if they find proof of the debt, it will then be reported again to the credit bureau, and it will again appear on your credit record.
The result? You will have paid money to have something removed from your credit record, but if the debt is still owing, it may eventually show up on your credit record again.
What should you do?
Please be advised that the credit bureau is required to investigate all disputed amounts and that you can request that investigation yourself – you do not need to pay someone to do it for you.
In addition, you can work on your bad credit report repair yourself. Our Credit Repair page explains under what circumstances and how you can erase your bad credit.