Which of These Is Considered Credit Repair?

The definition of “credit repair” has different meanings to different people. What really matters, however, is how the term “credit repair” is defined by Federal and state laws.  I put together a little quiz (below) which outlines 4 unique scenarios involving credit advice and money.  Which of these are credit repair…and why?

1. We have a conversation over a few beers and hot wings and I review your credit reports and give you some tips on how you can improve your scores. You pick up the tab as a way to thank me.

2. We meet in my office and I give you a lecture about the history of credit reports, credit scores and an in depth tutorial about how credit scores work and how they react to changes on consumer credit reports. You paid $100 for my time.

3. I’m a 501(c)(3) non profit and I review your credit reports and give you 5 steps to improve your credit scores. You pay me $100 for my time at the end of our session.

4. I speak at an event to 400 attendees and go over the top reasons why credit scores can go down. You paid $50 to attend the event. The flyer that was mailed to invite the attendees reads “Learn How To Improve Your Credit Scores.”

Try it first without looking up the definition of credit repair in the Credit Repair Organizations Act.

Credit Reporting Expert, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and CreditSesame.com, founder of www.creditexpertwitness.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  You can follow John on Twitter here.


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