How You Can Recognize a Credit Repair Scam
You’ve most likely seen the ads in your daily paper, on cable TV, and on the world wide web. You can hear them singing on the radio. You find their ads stuffed into your mail box, and maybe you have enjoyed cold calls while eating dinner, offering you credit repair wonders. They tend to make these or similar claims:
“Do You have credit problems? No problem!”
“We can easily remove all your bankruptcies, tax liens, judgments and bad loans from your credit file for ever!”
We can erase bad credit, fast, legal and all guaranteed.
Get a new credit file overnight - all legal.
It is not too good to believe these claims: they are very often signs of a scam. Some professionals even state they have never seen a legitimate credit repair company trying to make those claims. The fact is there is often not a quick fix for credit and creditworthiness. You can actually improve your credit report legitimately, but it takes some time, a conscious effort, and also sticking to a personal debt repayment plan.
Here are some warning signs that go along with a Credit Repair Scam
Often, organizations target uninformed people who have bad 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. In reality, these organizations cant deliver an improved credit report for you using the tactics they promote. No one can, if they stick to the law, remove accurate, but damaging information from your credit report. So after you hand them over fees, often several hundred dollars or more, you are left with the same, or worse 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 lawyer recommends that you refrain from contacting any of the three major national credit reporting companies directly yourself.
The company tries to offer to create a brand new or false credit identity - and then get a completely new credit report - by applying for an EIN number, so that you use that instead of your old and “damaged” Social Security number.
The firm wants you to shell out cash for credit repair services before they provide you any services. Under what is called the the Credit Repair Organizations Act, companies and firms that are offering to repair your credit, cannot require you to hand over the money, until they have delivered in full all the services they have promised and advertised.
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Tags: Credit, credit repair, credit score, debt, debt solutions, Finance, home and family, money, Personal Finance, Real Estate