How to Recognize a Credit Repair Scam
You’ve probably seen the advertisements in newspapers, on Television, and on the web sites. You can hear them on the radio. You find the ads in your mail box, and maybe even cold calls during dinner, offering credit repair services. They always make these or similar claims:
“Credit Score Down? No problem!”
“We can easily remove all your bankruptcies, tax liens, judgments and bad loans from your credit file for ever!”
We can legally erase all your bad credit - 100% guaranteed.
We create a completely new credit file for you - 100 % legal.
It is not too smart to believe these claims: they are many times signs of a scam. Some authorities even state they have never seen a legitimate credit repair company trying to make those claims. In reality there is often not a fast fix for credit and creditworthiness. It is true, however that you can actually improve your credit report legitimately, but it takes quite some time, a persistent effort. And also it is advised that you stick to a personal debt repayment plan.
Warning signals that should alert you on a Credit Repair Scam
All the time, companies target uninformed consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The truth is, these companies cant deliver an improved credit report for you using the tactics they promote. No one can legally remove accurate, but negative information from your credit report. So after you hand them over thousands of dollars in fees, you are often left with the same credit report and someone else has your money.
If you encounter credit repair offers, here is how you can tell whether the firm that does it is crap:
The service company does not tell you your rights and what you can do for yourself for free.
The firm wants that you refrain from contacting or calling any of the three major national credit reporting agencies directly yourself.
The firm suggests that you try to invent a new or false credit identity - and then get a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number.
The organization wants you to pay for credit repair services before they provide you any services. Under what is called the the Credit Repair Organizations Act, companies that are offering to repair credit, cannot require you to hand over the money, until they have completely delivered the services they have advertised.
Tags: Credit, credit repair, credit score, debt, debt solutions, Finance, home and family, money, personal finance, real estate