Credit Repair! Is it a scam?

I saw this on a newsgroup and didn't know what to believe, is it true?


> Cant Get Credit?
>
> We have compiled a list of businesses who WILL give you >credit, ranging from cars to mortgages, tv's to beds. >Also a list of companies who will repair your credit >rating plus other information.

"Repairing your credit rating" is on a par with "getting CCJ's in your name" removed.. i.e. impossible. Any company *claiming* it, is a con-artist who will just relieve you of a little MORE money ....

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

I think you should read these articles and then decide. In most circumstances, credit repair ads are scams, preying on hopeless penniless individuals.

[url]http://www.transunion.com/consumer/[/url]

How do I build a good credit history?

If you do not have a good credit history, it may be difficult for you to obtain credit. One way to begin a good credit history is to start small using the following tips:

Apply for credit with a local retailer such as a department store
Make a large down payment on a purchase and negotiate credit payments for the balance
Apply for a small loan at a bank or credit union where you have checking and savings accounts
If you are rejected for credit, find out why. You may be denied credit for various reasons, including not meeting the creditor's minimum income requirement or not being at your address or job for the required amount of time. You can overcome these obstacles with time.

If you are still unable to get credit, you may wish to ask a friend or relative with an established credit history to act as a co-signer for you. A co-signer promises to repay the debt if you don't. An account established with a co-signer will usually be reported on both of your credit reports.

Consumer Credit Counseling Services

If you have a negative credit history and need help dealing with your debts, you may want to contact a Consumer Credit Counseling Service (CCCS). This designation is used by members of the National Foundation for Consumer Credit (NFCC), a nonprofit organization with 1,450 offices in all fifty U.S. states, Puerto Rico, and Canada. An NFCC member is identified by the "member NFCC" seal. At little or no cost to you, CCCS counselors will work with your creditors to establish a repayment plan that will satisfy both you and your creditors. CCCS can also help you set up a realistic budget and plan for the future. To find the nearest CCCS office by mail or phone:

National Foundation for Consumer Credit, Inc.
8611 Second Avenue
Suite 100
Silver Spring, MD 20910
1-800-388-2227
"Repair" clinics

Many states have laws regulating companies that claim they can "repair" your negative credit information. No one can have accurate information removed. You may want to check with your state attorney general or local consumer protection agency before contracting or paying for credit repair services.

Once you have obtained credit, pay your bills consistently and on time. By doing so, you establish a positive credit history that helps you obtain future credit for larger purchases, such as a house or car.