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Credit Repair Scam - How To Avoid Being A Statistic?
A good credit history is critically important for the
consumer. A bad credit will prevent you from getting a business
loan, owning a home, or even a job. Promises to "fix" your credit
are always made by credit consolidation companies, but they are
seldom true. Here are some of the important tips to avoid
scams:
First things first. Negative information cannot be erased if
the information is correct. Only inaccurate information can be
corrected in your credit file. Credit file information remains on
your record for seven good years from the time it is reported to
the bureau. For bankruptcy, the information remains on your
record for ten years. All the consolidated information about your
credit bills you fell behind on, but are now paid, will remain on
your report for the time period mentioned above.
Do not pay the credit repair company unless their promises are
kept. Remember, the law is on your side. Federal law requires
credit repair companies to give you a complete detailed
explanation of your legal rights, a completely documented written
contract, and above all, 3 days to cancel. This applies to all
credit repair services including for-profit services, non-profit
services, creditors and credit unions.
Be wary about emails you receive. When you hover your mouse
over the link in the email, you will know for sure if it is a
trusted website or a fraudelent one. If fraudelent, report it to
your bank promptly.
You don't need a counselor to correct your mistakes in the
credit report. Take charge of it yourself. If you were recently
denied credit, you can request a free credit report. Otherwise
there is a small charge for it. Some states will allow you a free
copy of your credit report once a year. It doesn't cost you
anything to dispute or question items in your credit report. Get
online or follow instructions from your credit bureau. The three
major credit bureaus are Equifax (800- 685-1111), Experian
(800-682-7654) and Transunion (800-916-8800). In most cases you
will need to contact all the three credit bureaus as the
information they have about you may vary.
Remember that you can't create a second credit file. Some of
the fraudelent companies will offer to provide the consumers with
a different social security number (tax identification number if
ssn does not exist) in order to create a new credit file for the
consumer. Such a practice is called as file segregation.
File segregation is illegal and does not work.
Whereever possible, add explanation to your credit report to
prove your point. If you have legitimate reasons for not paying
certain bills on time (switching jobs, illness), or if you
refused to pay because of a dispute, send the bureau a statement
to be tagged with your credit report. Each lender who pulls your
report will be aware why you fell behind on those bills.
Counseling might be a good option. Find a good non profit
consumer credit counseling service in your neighbourhood. Get
online or open your yellow pages to find one. Seek the guidance
of friends and family members. Select a counselor, meet them in
person to make sure they are right for you. Ask them on tips and
advice on how to build a good credit history. If you are still
lagging behind on your payments, credit consolidation firms will
be able to set up a payment plan with your creditors. If money is
an issue, select a non profit credit counseling service. They
will offer their service for free or for a very low cost.
Ameri credit services provides credit
counseling and credit consolidation to customers. Visit us at
http://www.americreditservices.com
for free credit consolidation articles, free credit counseling
tips and non profit credit management services.
MORE RESOURCES:
Credit - Google News
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