With regard to the issue of repairing credit, it is generally better to do it yourself. Many times you will hear or see advertisements from companies claiming they have outstanding Credit Repair services which offer you “legal” and “guaranteed” solutions for your credit problems. These services may in fact use slogans os that can be quite enticing to those who are in a financial bind. There are also other companies which will try and convince you to utilize their service after giving “authentic” testimonials from several customers, who, in some instances may not exist atl all.
If you find yourself in a financial pickle and are are really in need of credit repair, the first thing you want to do is to act immediately. You should note that this action should be done by you personally and not by anyone else. As luck would have it y, there are several factors operating that can help you avoid scam Credit Repair Services.
The Fraudulence
Day after day, several companies appeal to consumers who have awful credit histories. On many occasions they promise
to clean up those credit reports, for a price, and to help
consumers get a loan for a car, a mortgage for their home, and even get a job. The sad part is the fact that they cannot deliver on their claims which is something to keep in mind if you don;t want to make matters worse. These companies are only out to grab the cost of their services up front and then ride off in a cloud of dust never to be seen or heard from again.
How to Look for the Signs of a Scam
If you had responded to a offer for a credit repair service, there
are warning signs that can help you determine the authenticity of the credit repair offer. First and foremost, be wary of companies that want you to pay for the cost of the repair before providing any services. They will ask for an upfront payment before the services are rendered. In addition, avoid those companies that do tell you about any possible legal rights you might be entitled to and what things you can do yourself that won’t cost you anything out of pocket.
There are some companies which advise consumers to directly
contact a particular credit reporting agency – you should avoid these companies. There are procedures in place for you to get a free credit report each year. Moreover, if the company you have
contacted suggests that you to create a new credit identity and then create a brand new credit report by applying for an EIN (Employer Identification Number) to use rather than your SSN, you should immediately stop contacting that company.
Lastly, those firms that advise you to argue all information included within your credit report or to take measures that may seem illegal, i.e. generating a new credit identity, should be avoided at all costs.
Remember, under law, that you can be prosecuted for wire or mail raud if you use the telephone or mail to apply for credit and subsequently give information that is not authentic. Lying on a credit application, misrepresenting your Social Security Number and acquiring an EIN from the Internal Revenue Service under false pretenses are all federal crimes.
Most importantly, you should remember that there is a statute that is included ithin the Credit Repair Organization Act that Credit Repair Companies do not have to require you to pay until the services they have promised are complete.
The best possible way to avoid having a poor credit history and staying clear from fraudulent credit repair agencies, is to do a periodic credit report eview. This you can do annualy at no charge. Reviewing your credit report is important because the information in your report will affect your chances of getting a loan. Make sure that the information is correct and complete — that is has been updated before applying for a loan. Lastly,
by doing periodic review on your peronal credit report, you
can be safe from identity theft, which can create a major problem for you rpersonally not just in your credit report.
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