Whether you need credit repair due to poor credit choices or lack of credit, knowing the credit repair news and trends will help you to make the right decisions. With a bit of knowledge and hard work, you can drastically reduce your company's debt and improve your credit score.

There's no doubt that credit repair companies make a lot of money off of helping people repair their credit. However, you may be able to save your credit without the use of credit repair services.

Staying up to date on credit repair news and trends will help you to:

1. Learn your rights and responsibilities when it comes to repairing credit. You should know what your business needs to do in order to get back on track.

2. Build good credit habits. It's not enough to simply repair your credit. Credit repair counseling could give you the knowledge you need to maintain a good credit score for life.

3. Beware of fly-by-night credit repair businesses. There are many scams within the credit repair industry. It's your responsibility to recognize the warning signs and avoid these types of companies.

Action Steps
The best contacts and resources to help you get it done

Look to the government for the most up to date credit repair information

If you really want to stay on top of things, you'll look to the information that the US government provides to consumers and business owners about using credit wisely and how to repair credit. This will help you to note any changes in the law that could affect your business.

I recommend: Both the FDIC and the Federal Trade Commission (FTC) have a wealth of information regarding your rights. It can help you to understand how companies determine your credit score and what to do if a collection company harasses you. They also have a report on how to repair credit without a credit repair company that addresses how to spot a credit repair scam.

Contact credit repair specialists at non-profit organizations

Non-profit organizations offer great resources for those who are looking to improve their credit. The best part about talking to a non-profit organization is that their advice and information is free.

I recommend: Sign up to receive the AMMEND Credit Counseling newsletter for tips about getting out of debt. Debt-Free America offers an education section on their website to help you learn what you can do.

Look for credit repair information from blogs

Blogs are gaining in both popularity and credibility. With frequent updates, you can be sure that you are learning some of the latest tricks to repair credit.

I recommend: Check out the Credit Repair Blog for regular advice about achieving and maintaining good credit. Clever Dude offers personal finance advice and details the journey of one couple to become debt free.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You do not need to purchase credit repair software in order to repair your credit. However, it is a good idea to track your company's income and spending, so a budgeting software program is necessary.

You've seen the ads, received the emails, and opened the letters—all of them telling you how you can "legally" repair your credit history by using credit repair services or software. The problem is that many of the tactics these credit repair consultants are suggesting are either illegal or can be done without their help for a fraction of the cost.

According to the Federal Trade Commission, we should be wary if credit repair specialists:

1. Want you to pay a fee before providing any credit repair services.
2. Don't tell you your rights and what you can do for free.
3. Recommend that you don't contact a credit reporting agency on your own.
4. Suggest that you invent a new identity by applying for a new Social Security Number or Employer Identification Number.
5. Suggest that you dispute everything in your credit report.

Many of these tactics are fraudulent, and you could even face some heavy jail time.

Action Steps
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Get copies of your credit reports

All three major credit reporting agencies have to provide you with copies of your credit reports on a yearly basis if you request it or when civil action has been filed against you for collection.

I recommend: Contact AnnualCreditReport.com to obtain free copies of reports from all three agencies on an annual basis. Contacting Experian, TransUnion and Equifax directly could result in your having to pay a fee for the report.

Read the reports for errors and omissions

You can dispute anything in your credit reports that is suspicious, erroneously reported or for claims that are more than seven years old. Bankruptcies can stay on your report for 10 years.

I recommend: Send a letter to the credit reporting agency disputing the entry. Enclose copies of as much documentation as you can to support your claim. The agency then has 30 days to investigate your claim, unless they consider it frivolous. Don't dispute too many claims, or they will ignore your letter and may file charges of fraud against you. For phone numbers and address of the three reporting agencies, check out mortgage101.com. For a sample letter, go to page six of the Federal Trade Commission's credit repair website.

Contact the creditor

Follow up by sending a letter disputing the error to the company or business that filed the claim.

I recommend: Tell the creditor or credit information agency that filed the report that you've found an error, and request that they fix it. If they prove you correct, they cannot refile the claim. Find sample letters at CreditHealer.com and at the Credit Infocenter.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Once your credit is reestablished, consider obtaining a gasoline card or a secured credit card to generate a positive credit history.
• •  Keep your credit card balances within 30 percent of your available credit.
• •  Keep requests for additional credit at a minimum. Too many inquiries can hurt your credit rating.
• •  A so-called 'ideal' credit report should contain three-to-five credit cards, a mortgage loan and an installment loan, all showing a positive credit history for about two years.

Credit repair is a career where individuals work closely with the financials of an individual or business. The goal is to find a way to improve credit scores and creditworthiness. Individuals who wish to provide this type of service will find several educational opportunities available to them.

To work at credit repair businesses, applicants must have at least a high school diploma, with higher education often required. Becoming a credit counselor requires additional training and credit education. Here are a few additional qualifications to keep in mind:

1. Learn what goes into repairing credit including understanding credit reports.

2. Invest in training to use credit repair software programs most companies use.

3. Be able to provide credit repair counseling by having some social counseling experience or training.

Action Steps
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Determine licensing requirements for credit repair specialists

Credit repair services often hire specialists or credit counselors who have state required licenses. These requirements change from one state to the next. States list their requirements through their commerce departments or licensing services departments. To obtain licenses, students usually must complete specific course requirements and pass a licensing exam.

I recommend: Obtain necessary licensing prior to working to repair credit. The Montana Department of Justice: Consumer Protection outlines specific requirements for credit counselor licensing. The State of Michigan defines it's requirements for a credit counselor very specifically. Financial planning services, if offered by the counselor, may require a debt management license.

Find formal education requirements of credit repair consultants

Credit repair companies may require their counselors to become financial planners or financial advisers. Specialist training programs are available for this degree-based program. Some universities and community colleges offer this training. Other programs are available through specialized educational facilities.

I recommend: Choose credit repair education and training from an appropriate resource. The Association for Financial Counseling and Planning Education (AFCPE) offers several financial planning programs including an accredited financial counselor-training program. The Institute for Financial Counseling offers continuing education for financial counselors. This may or may not be required depending on the state's requirements of credit counselors.

Get credit repair information from trusted sources

To provide credit repair counseling services, individuals often need to understand credit markets, credit reports and debt management. To learn this and to keep up to date on it, individuals may wish to join national and local associations dedicated to providing quality counseling.

I recommend: Seek training from credit repair programs offered through national organizations and associations. Membership often requires that educational and career standards are met. The National Association for Certified Credit Counselors provides a credit counselor certification course and other courses for potential and current counselors. Consider joining the American Association of Debt Management Organizations for seminars and informational opportunities.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A credit repair company may provide in-house training for potential qualified applicants. Each company also sets standards for education and training of each individual they allow to work in their business. Check with these organizations prior to obtaining an education.

Credit repair will allow you to improve your credit scores and become more likely to gain approval for loans and lines of credit. Different laws can affect the way that you go about looking for credit repair options.

Another feature of understanding credit repair is to review the key terms of credit repair services. Examples of credit repair services include credit counseling and credit report repair. These services can raise your credit score significantly and improve your overall credit report.

Action Steps
The best contacts and resources to help you get it done

Fair Credit Reporting Act

This law allows for individuals to check their credit report annually at no cost. You are also permitted to access a free report if any type of credit companies takes adverse action against you. This can be essential to your credit repair.

I recommend: The Federal Trade Commission has information about the Fair Credit Reporting Act in their article about credit repair.

Equal Credit Opportunity Act

The Equal Credit Opportunity Act is another term that you may see when looking for credit repair information. This act requires that credit bureaus have separate credit histories for both husbands and wives.

I recommend: Read more about the Equal Credit Opportunity Act on the Credit Histories and Reports webpage of the Federal Reserve Board.

Credit reporting agencies

Credit reporting agencies are companies that collect consumer credit information from public records and creditors. The three main credit reporting agencies are Equifax, Experian and TransUnion.

I recommend: Mortgage 101 defines and gives contact information for credit reporting agencies.

Credit report repair

A service available for consumers looking for credit repair is the ability to hire a law firm to perform credit report repair. During this process, questionable items may be legally removed from your credit report.

I recommend: Lexington Law offers an overview of their credit report repair service and how it works.

Credit counseling

Credit counseling involves speaking to a specialist on ways that you can repair your credit history. Suggested methods may include loan consolidation and how to avoid severe debt.

I recommend: The National Foundation for Credit Counseling explains the different facets of credit counseling.

FICO scores

FICO scores are used by different loan and credit agencies to determine your eligibility for credit. These scores are created by the Fair Isaac Corporation. Credit repair involves raising these scores to improve your likeliness to get approved for a loan.

I recommend: MSN Money has an article that delves into FICO scores and the way that they are determined.