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Definition: Credit repair is a process, meant for mending & fixing up a bad credit report.

Purpose of this article: Applying shortcuts for repairing your credit will be like playing baseball without a ball. You just can't repair your credit overnight. It takes a serious calculation, a personal debt repayment plan and good advisor. Beware of the companies offering you credit repair in short time. Check their credibility. This article helps you to judge a debt consolidation and credit repairing company better.

Keep these points in mind before choosing a Credit Repairing Company.

• Collect valid Documents: According to the Credit Repair Organizations Act, you have the right to collect written details of the Credit Repair service offer from the Credit Repair organizations before entering into any agreement. This is however not applicable for Creditors. The consumer can however cancel the agreement within three working days of signing.
  
  
• Don't pay in Advance: The Service provider can demand payment only after providing complete services as per the agreement. In case of telephonic service, pay the company only after they have provided you with valid proof of their services. You can ask for a copy of your Credit Report issued by an established Credit Bureau and shows signs of Credit Repair and looks healthy.
  
  
• Removal of accurate negative information is impossible: Correct & authentic negative information forms a very crucial part of your Credit Report & cannot be removed with money. Don't believe in the false promises of Credit Repair companies. Credit Reports can be cleared of negative information only if they are incorrect & wrongly placed. Accurate negative information stays in your Credit Report for 7 - 10 years. Always keep in mind that Promises to remove correct negative information from Credit Report against a fees is absolutely illegal & thus impossible.
  
  
• Creating a Second Credit File is impossible: Often you must have come across Credit Repair Companies or individuals offering to create a second credit file using a tax-id number or a second social security number. They promote this service by promising that this will help you in getting Credit. This service is alternatively known as "file segregation" and is completely illegal. Anyone opting for this service could be subject to serious penalties.

Do it yourself: If you find any discrepancies in your credit report, contact the major credit reporting agencies to know how you can correct it yourself. You can also take help from the information on credit history self-help and how to avoid scams, published by FTC. Both the services come free of cost & are very simple to use. In case you have accurate negative information in your Credit Report, it is better to attach explanations for non payment in your Credit File. This may convince the Creditors to issue loans to you in the future. For further queries contact our Forum.