A credit sweep refers to an action taken by a credit repair company that claims to "sweep" your credit report and dispute all negative items at one time. The sweep will claim the items are fraudulent, usually as a result of identity theft.
However, unless all items on your credit report are fraudulent (which is improbable), a credit sweep is illegal. While credit card fraud statistics show that fraud cases continue to increase, a credit sweep is not the answer.
Are credit sweeps legal?
A credit sweep is illegal in most cases. There are rare cases where a credit sweep may be legal, such as when a child's identity is stolen.
Common credit sweep scams By their nature, credit sweep scams target vulnerable people. Often, these credit repair scams promise many impossible results that the average customer won't understand.
Removing negative information immediately: Common scam services often promise to remove negative information from your credit report. This can't be done. In most cases, negative items will remain on your history for up to seven years.
Opening a new credit history: Beware of any services that claim to open a new credit history. This is identity fraud, and you will get caught.
Fortunately, unsavory services can be easy to spot. Avoid businesses that require an upfront payment. Watch out for blank paperwork that demands your personal information. And always avoid businesses that claim to repair your credit quickly. Credit repair is never fast, even when done correctly.
Alternatives to credit sweeps:
There are no genuine alternatives to credit sweeps. However, there are strategies you can use to clean up your credit. They include:
Sending a pay for delete letter: You negotiate, asking that negative marks are removed in exchange for paying your debt.
Goodwill letter: You request a negative mark be removed as an act of goodwill. This may work if you have a good credit history or it was a minor oversight that caused the mark.
Disputing inaccurate information: It's important to check your report for errors that could lower your credit score. According to the Fair Credit Reporting Act, any dispute not addressed by a credit bureau, lender or debt collector within 30 days will result in the disputed item's deletion.
If negative marks can't be removed, they will remain on your credit report for seven years.
