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Avoiding the Credit Repair Scam

Updated: Jan 5





In the issue of repairing your credit, it is best to

do it yourself. Most often, you may hear or see

advertisements claiming outstanding credit repair

services offering you "legal" and "guaranteed"

solutions for your credit problems. These services may

use mottos that are quite enticing to those who are in

dire need of credit repair. There are even others who

get easily convinced after reading "authentic"

testimonials from several customers, who might not

actually exist.




When you are really in need of credit repair, the

first thing you want to do is to act immediately. You

should remember that this action should be done by you

and not anyone else. Luckily, there are several

factors that can help you avoid scam credit repair

services.


The Fraudulence


Day after day, several companies appeal to consumers

who have awful credit histories. Often, they promise

to tidy up credit reports, for a price, to help

consumers loan a car, mortgage a home, or even get a

job. The horrible fact is they cannot deliver; you

should keep this in mind especially if you do not want

to worsen your debt. These companies would only take

the cost of the services with them and vanish into

thin air.


The Signs of a Scam




If you had responded to a credit repair service, there

are warning signs that can help you determine an

authentic credit repair offer from a fraud. Firstly,

be aware of companies that wish for you to pay the

cost of the repair before providing any services. In

addition, avoid those companies that do not divulge

any possible legal rights you are entitled to and what

processes you can do yourself without payment.


There are companies that advise consumers to directly

contact a credit reporting agency - you should avoid

such companies. More so, if the company you have

responded to suggests that you to create a new credit

identity and then make a new credit report by applying

for an Employer Identification Number to use rather

than you SSN, you should immediately stop contacting

that company.


Lastly, those that advise you to argue all information

included within your credit report or take actions

that may seem illegal, i.e. generating a new credit

identity, should be avoided.


Remember that you could be prosecuted for wire or mail

fraud if you use the telephone or mail to apply for

credit and give information that are not authentic.

Lying on a credit application, misinterpreting your

SSN and acquiring an Employer Identification Number

from the IRS under false pretenses are all federal

crimes.


Most importantly, you should remember that included

within the Credit Repair Organization Act is the rule

that credit repair companies should not require you to

pay until the services they have promised are

complete.


The best possible way to avoid poor credit history,

and totally keep you safe from fraudulent credit

repair services, is to do a periodic credit report

review. Reviewing your credit report is important


because the information in your report affects your

chances of getting an insurance or loan. Make sure

that the information is correct, complete and

regularly updated before applying for a loan. Lastly,

by doing periodic check-up on your credit report, you

can be safe from identity theft, which can create a

major problem not only in your credit report.




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