Looking to fix your credit? An illegal credit repair scam isn’t the answer

Need better credit to do things like get a loan, buy a car, or rent an apartment? There are things you can do, but don’t believe a credit repair company that promises to remove accurate and up-to-date information.

Also avoid companies that tell you to knowingly file a false identity theft report — that’s a crime, and it could result in a fine, imprisonment, or both — and companies that promise to create a “new” credit identity or hide your bad credit history or bankruptcy.

Anything a credit repair company can do, you'll be able to do for yourself for little or no cost. The best way to improve your credit is to show over time that you pay your debts when they’re due. It’s also a good idea to regularly check your credit report and dispute any errors you find. Learn more about getting your free credit report.

Your Credit History

What makes my credit good or bad?

Whether you have good or bad credit is based on your credit history. Find out what your credit history looks like by checking your credit report. Your credit report has information about whether you pay your bills on time, what loans and credit cards you have (and the amounts you owe), and whether you’ve filed for bankruptcy.

The more positive information you have in your credit report, like on-time payments and low credit card balances, the better your credit will be.

What happens if there’s negative information in my credit report?

Credit bureaus sell the information in your report to businesses that use it to decide whether to loan you money, give you credit, offer you insurance, or rent or sell you a home. Some employers use credit reports to decide whether to hire you. Whether you have a good or bad credit history also affects how much you’ll have to pay to borrow money. If there’s a lot of negative information in your report, you might have to pay more in interest.

Can I get negative information removed from my credit report if it’s true?

Usually not. Companies that promise to repair your credit can’t remove true information. But negative information does go away over time.

Most negative information will stay on your report for seven years, and bankruptcy information will stay on for 10 years. And in some cases — like when you’re being considered for a job paying more than $75,000 a year, or you’re trying to get a loan or insurance valued at more than $150,000 — a credit bureau may include older negative information on your report that wouldn’t show up otherwise.