If you have poor credit, you’re likely to see promotions for services to clean credit fast, that sometimes include scams such as cleaning up or erasing your credit in just thirty days. The scam is usually something similar to disputing a valid negative entry on your credit report, and if a creditor does not respond to your dispute within thirty days, the credit reporting agency (CRA) has to remove it from your credit report. The problem with this is that this scam is so widespread now, that any creditor will always respond to your dispute right away. So, this scam does not work as effectively as it might have a few years ago.
Another credit repair scam is to set up an Employer Identification Number (EIN) which is like a social security number for business. You then use that EIN for all of your future credit needs, so that it looks like you have clean credit. This is completely illegal use of an EIN, because it constitutes fraud and misrepresentation when you apply for credit and do not give your correct social security number. It also does not absolve you of any of the debt obligations you have legitimately assumed in the past.
There is only one way to clean credit legally – pay your debt on time. This doesn’t mean you shouldn’t clean up errors on your credit report, and they do happen. For example, payments you’ve made accidentally do not show up on your credit report; this needs to be addressed with either with the creditor or the CRA. Or, you may have a legitimate dispute about a medical bill, but because it takes several months, the medical service sends the bill to collections, and that appears on your bill. This is the kind of debt you must have removed, and which a creditor should remove, right away.
For legitimate ways to clean up your credit, there are basic steps you can take, but ultimately it boils down to just pay on time, don’t go over limit, don’t pay late, and pay down any past due balances. Doing this, over time, will clean up your credit fast.