Is credit repair legal?
Not only is it legal, it's your right to fix any erroneous information being reported on your credit report.

However, there are many so called "credit repair" tactics out there that are not legal. Consumers need to be aware that not all credit repair companies are not created equal. If you come across one of these practices you should beware and steer clear.

• Companies that do not tell you your legal rights and what you can do for yourself for free.
• Companies that suggest that you try to invent a "new" credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number.
• Companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
• Companies that state "We can erase your bad credit - 100% guaranteed."
• Companies that state "We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!"

You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It's a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.