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Illegal Credit Repair Tactics

Drawing of a hand shakeTo understand what legal credit repair is, you need to understand illegal credit repair.

Illegal: Altering your social security to improve your credit rating. Report to the authorities any credit repair company that encourages you to change your social security number or acquire a new security number under your name.

Illegal - Disputing every credit listing on your credit report
The Fair Credit Reporting Act specifically states that only information on the credit report that are unverifiable, inaccurate or misleading may be disputed. Any credit listings that are definitely yours should not be disputed.

Illegal - Charging for credit restoration that have not been completed.

What is credit report repair?

Legal Credit Repair consists of removing the negative items from a person’s credit report. There are different strategies to improve a credit report:

"Goodwill" Negotiation - Simply asking creditors to remove negative items from your credit reports can result in deletion of negative information. Creditors have the ability to remove late payments and other damaging information. There are no laws that prevent creditors from removing negative information.

Credit disputation

The Fair Credit Reporting Act the provides with the opportunity to contact the credit reporting agencies directly and contest negative items on your credit report. Just like in court, consumers can plead "not guilty" to negative information on their credit reports, and make the credit bureaus prove that you have negative credit information. The Fair Credit Reporting Act gives you the legal right to dispute any and all questionable items on your credit report that you believe are unverifiable, inaccurate, or misleading. Disputed information on a credit report must be deleted if the credit agencies are unable to confirm that the information on your report is accurate.

Credit Repair: how to help yourself

You see the ads in newspapers, on TV, and online. You hear them on the radio. You get fliers in the mail, email messages, and maybe even calls offering credit repair services. They all make the same claims:

“Credit problems? No problem!”

“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

“We can erase your bad credit — 100% guaranteed.”

“Create a new credit identity — legally.”

Do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the Federal Trade Commission, the nation’s consumer protection agency, say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.
SOURCE: Federal Trade Commission

Credit utilization calculation

According to Experian, credit utilization represents up to 30% of a credit score. Credit utilization is the measurement between the current loan balance and the credit card limit. For example, let's say you have a credit card with a $1,000 limit and you owe $500, the credit utilization percentage in this example is 50%. If you owed $300, the percentage would come in at 30%. You can calculate the individual and combined credit utilization percentage with the credit card utilization calculator

Rotating question markFrequently Asked Questions About Illegal Credit Repair

Q. How can I change my credit score illegally?
A. Illegal ways to change a credit score include:

  • Employer Identification Numbers - Are social security numbers that are obtained by companies.
  • Credit Privacy Numbers - A CPN, or credit privacy number, is a nine-digit number that's formatted just like a Social Security number (SSN). It may also be called a credit profile number or credit protection number. Companies that sell CPNs to consumers market them as a way to hide a bad credit history or bankruptcy. They'll also claim you can use the CPN instead of your SSN to apply for credit with your new credit identity.
    Does this seem too good to be true? That's because it is. In fact, it's illegal. SOURCE: The Truth About CPNs
  • Companies that add information to credit reports - Fake companies are created who then add information to credit reports.

Q. How can I fix my credit score fast?
A. Reduce your credit card balances, do not miss any payments and ask for a credit line increase. Using the Rapid Rescore program can improve a credit score.