Is Credit Repair Legal in Alabama


If you're a resident of Alabama and have a less than perfect credit score or a few blemishes on your credit profile you may be wondering is credit repair legal in Alabama or is it legal to pay someone to repair your credit for you? You may even be wondering if credit repair is right for you, if so should you do it yourself or pay a professional company. If you determine credit repair is right for you're probably wondering what your next steps should be?


Yes, credit repair is legal in the state of Alabama. All consumers have the legal right to challenge inaccurate and incomplete information that may be reporting on their credit reports inaccurately. It is also legal to pay a professional credit repair company or you can do it yourself. It is illegal for a company to communicate with you that you cannot repair your credit on your own.


  • What is credit repair?

  • How do I know if I need credit repair?

  • Are there any laws against credit repair in Alabama?

  • Can I repair my own credit?

  • Is credit repair expensive in Alabama?


What is credit repair?


Credit repair is the process of removing inaccurate, unverifiable, and incomplete information from your credit reports. This is done by contacting the credit bureaus and furnishers reporting the information on your credit report. Credit building is also an essential part of the credit repair process. If you have limited credit or no credit, credit building will be just as important, if not more, as getting negative information removed from your credit reports.



How do I know if I need credit repair?


Credit scores range from 300 to 850 and are used by creditors to determine your credit worthiness. A credit score below 700 is considered less than average. If your credit score is less than average or low you may need credit repair. If you can’t get approved for credit when you apply for new accounts that may be another sign that you need credit repair. Having multiple negative accounts reporting on your credit profile is another sign that you are in need of credit help.


Are there any laws against credit repair in Alabama?


At the time of publishing there are not any laws against credit repair in Alabama. A credit repair company does not have to be bonded to have clients in the state of Alabama. Although Alabama does not have any specific laws for credit repair the Credit Repair Organizations Act (CROA) and Federal Trade Commission (FTC) have laws in place to protect consumers from any shady business practices, such as no false representations and money being accepted before services are rendered.


To read the Credit Repair Organizations Act in full, visit The United State's House of Representatives record of the act here.


Can I repair my own credit?


Yes, you can repair your own credit. It is advised that you try to repair your credit on your own before you reach out to a professional so that you have a better understanding of the process. Although credit repair is legal in Alabama it is illegal for a professional credit company to tell you that you cannot repair your credit on your own