DIY Credit Repair Is Better Than a Credit Repair Company
How You Can 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 bad credit – 100% guaranteed.
Create a completely new credit identity – legally.
It is rather dumb to believe these claims: they are in many cases signs of scam operations. Many professionals even state that there is not one real credit repair company that tries to make those claims. The truth of the matter: most often there is no fast solution for bad credit and creditworthiness. The truth is, however that you can actually improve your credit score legitimately, but it does not happen over night and it takes a persistent effort. And also you should stick to a personal debt repayment schedule.
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 a credit repair offer, here is how to tell if the company or firm behind 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 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: Cars, credit, credit repair, credit score, debt, debt solutions, Finance, Home and Family, money, personal finance, real estate
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