Credit Cleaning Companies: Illegal!
You’ve seen the emails promising to "erase bad credit.” Beware! Claims of guaranteed credit repair are out and out false.
A common “strategy”: applying for a new Social Security Number, Employer or Taxpayer ID Number — all illegal. Another method: inundating credit bureaus with letters disputing all negative information on a credit report, in hopes they will default on the 30-day limit allowed to respond to such requests.
Credit cleaning companies don’t tell you that inaccurate info on your credit report usually can be removed with a simple call to the creditor. Be calm and respectful, and you may also be able to convince them to remove accurate but negative marks as well, especially if there were mitigating circumstances.
Some companies are charging almost $200 a month to clean your credit. Most of this involves composing multiple dispute letters to creditors in efforts to remove negative marks that could hurt your score. What they don't tell you is that the biggest contributors to your score is your debt and payment history which cannot be changed. So if you owe a large portion of a debt, without what you would pay in a year compared to what could be used towards debt.