Many employers check job applicants’ credit reports to help determine whether or not to hire them. As a result, jobseekers may be vulnerable to and tempted by companies offering to repair their credit.

For a fee, credit repair companies may promise to “clean up” your credit or quickly improve your credit score, but most will do little or nothing to help.

Since January 2009, the Ohio Attorney General’s Office has received more than 140 complaints about credit repair services. Many consumers say they paid credit repair companies anywhere from $200 to $2,000 but never received any real assistance.

One consumer gave a company his personal information and $3,500 for help disputing information on his credit report and building better credit. The company promised to help within 30 days, but after 4 months, the consumer saw no improvement in his credit.

In 2008, the Ohio Attorney General filed a lawsuit against The Credit Physician, an Internet company that charged consumers for help improving their credit scores and preventing identity theft. After finding that the company failed to deliver on its promises, the Attorney General charged The Credit Physician with violating Ohio’s Credit Services Organization Act and Consumer Sales Practices Act. The court agreed with the Attorney General that such violations had occurred.

If you want to improve your credit record, take the following steps:

• Always pay on time.
• Don’t take on new debt to pay old debt.
• Periodically check your credit report at www.annualcreditreport.com or (877) 322-8228. Through this service, you can receive a FREE copy of your credit report once a year from each of the three credit reporting agencies: Experian, TransUnion, and Equifax. Do not confuse the Annual Credit Report site with those you see advertised frequently on television. Other sites may claim to offer you a free credit report, but usually, these sites will end up charging you for a monthly membership or other fees.
• Correct any mistakes on your credit report. If you notice an error, contact the appropriate credit reporting agency in writing to dispute the information. Keep in mind that accurate negative information cannot be erased, but consistently making your payments on time will help improve your credit score. 
• If you realize you can’t pay your monthly bills, contact your creditors immediately to arrange a payment plan.
• Contact a nonprofit credit counseling service in your area.

• Obtain a low-limit and low-fee credit card from a credit union, and always make payments on time.

Links

File a complaint about credit repair services – Ohio Attorney General’s Office

Check your free credit report – www.AnnualCreditReport.com

Dispute information on your Equifax credit report – Equifax

Dispute information on your Experian credit report – Experian

Dispute information on your TransUnion credit report – TransUnion