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    s a Social Security number. Then they instruct you to apply for credit using this and a different address. This practice, known as file segregation, is a federal and state felony.

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    Stay away from a credit repair firm that does any of the following:

    1. Promises you the moon. Most negative information stays on your credit report for seven years; judgments and lawsuits are reported for seven years or until the statute of limitations runs out; bankruptcy remain for up to 10 years.

    2. Advises you to dispute all negative information in your credit report. The company will flood the top 3 credit bureaus with letters disputing both inaccurate and accurate information. The theory being that most creditors will fail to respond within 30 days and that item will be permanently deleted.

    3. Offers to help you get a new credit identity. The company tells you to apply for an Employer Identification Number or EIN number. Which has the same number of digits as a Social Security number. Then they instruct you to apply for credit using this and a different address. This practice, known as file segregation, is a federal and state felony.

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    reported for seven years or until the statute of limitations runs out; bankruptcy remain for up to 10 years.

    2. Advises you to dispute all negative information in your credit report. The company will flood the top 3 credit bureaus with letters disputing both inaccurate and accurate information. The theory being that most creditors will fail to respond within 30 days and that item will be permanently deleted.

    3. Offers to help you get a new credit identity. The company tells you to apply for an Employer Identification Number or EIN number. Which has the same number of digits as a Social Security number. Then they instruct you to apply for credit using this and a different address. This practice, known as file segregation, is a federal and state felony.

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    ny will flood the top 3 credit bureaus with letters disputing both inaccurate and accurate information. The theory being that most creditors will fail to respond within 30 days and that item will be permanently deleted.

    3. Offers to help you get a new credit identity. The company tells you to apply for an Employer Identification Number or EIN number. Which has the same number of digits as a Social Security number. Then they instruct you to apply for credit using this and a different address. This practice, known as file segregation, is a federal and state felony.

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    permanently deleted.

    3. Offers to help you get a new credit identity. The company tells you to apply for an Employer Identification Number or EIN number. Which has the same number of digits as a Social Security number. Then they instruct you to apply for credit using this and a different address. This practice, known as file segregation, is a federal and state felony.

    4. Asks you

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    s a Social Security number. Then they instruct you to apply for credit using this and a different address. This practice, known as file segregation, is a federal and state felony.

    4. Asks you to pay for credit repair before services are provided. This is a direct violation of the Credit Repair Organizations Act, which states that credit repair companies can't charge you fees until after they have completed the promised services.

    The Credit Repair Organizations Act:

    By law, credit repair organizations must give you a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before signing the contract.

    The law contains specific protections for you. For example, a credit repair company cannot:

    1. Make false claims about their services.

    2. Charge you until they have completed the promised services.

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