What Is a Credit Sweep and How Does It Work?

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What Is a Credit Sweep and How Does It Work?

What Is a Credit Sweep and How Does It Work?

One of the biggest scams in the world of credit right now is the so-called credit sweep. Disreputable credit repair companies will often engage in using this language, which more often than not is a scam, as the term refers to removing all negative data from the reports.

The idea of a credit sweep is to get credit bureaus to remove negative information from a credit report before the bureau is legally required to do so. As of today, the law from the FCRA is that a bureau must remove negative information from a credit report after seven years. The one exception to this rule is Chapter 7 Bankruptcy, which can legally stay on a credit report for up to ten years.

A credit repair company will try and use a credit sweep to delete this information from your credit report prior to the seven-year mark.

 

How Does a Credit Sweep Work?

 

A credit repair company will ask a consumer with poor credit to tell an enforcement agency that they have become a victim of identity fraud in order to have negative, yet valid, information

What Is a Credit Sweep and How Does It Work?

What Is a Credit Sweep and How Does It Work?

removed from their credit report.

Essentially, a consumer will have to go to the police or another type of enforcement agency to fill out a form saying they have been a victim of identity theft. The “victim” will then show the report to the credit bureaus as proof that they have been a victim of fraud and that all of the negative information on their report is a result of stolen identity.

If successful with a credit sweep, a CRA must remove all of the negative information implicated within four business days, preventing the information from ever coming back. Essentially, the CRA will sweep all of the negative information from that credit report.

 

Credit Sweeping Is FRAUD

 

Credit sweeps are illegal and fraudulent. There is no way around that.

When someone performs a credit sweep, they are lying to the CRAs and the police. Though it should seem obvious to many, filing a false police report is illegal. You default on your credit obligations when you lie to the credit bureaus, which could land you in court. Eventually, you could be hit with a fraud charge that lands you in prison.

 

Avoiding Credit Sweeps

 

If any company ever tells you that you can use a credit sweep to fix your bad credit, take it as a MASSIVE red flag. Being prosecuted for fraud is not the way you want the credit-repair process to go.

The better route is to pay your bills on time so that you don’t have negative information on your credit report in the first place. Never place more on a credit card than you can handle.

If you’re looking to potentially boost your credit, you might consider authorized user tradelines.

If you’re interested in how tradelines might be helpful in your situation, make sure to get in touch with us here at Personal Tradelines. We look forward to helping you meet your financial goals and take your next steps in life.