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Dont Fall for Credit Repair Scams
We've all seen the ads on television or in magazines,
shouting, "Erase bad debt!" or "Remove negative entries from your
credit report!" If you're a person suffering from a
less-than-stellar credit rating, those headlines may seem like
the answer to a prayer.
The only problems is, those programs don't work, and to add
insult to injury, you'll find yourself paying hefty fees to those
companies, only to end up right where you started, or worse.
Sometimes, what is couched as a credit repair program may
actually be an attempt to steal your identity by gaining
information about your social security number, bank accounts, and
credit cards.
Here's how the credit repair scam generally works:
First, the company will contact the various credit bureaus and
tell them that the negative information contained in your files
is false. Since they want to accurately reflect your credit
information, the credit bureaus will temporarily remove the
negative information while they investigate the claims.
Meanwhile, the scammer sends you a copy of your credit file,
showing that the negative information has been removed, claiming
that your credit history has now been repaired.
It will seem like a miracle, until you learn that as soon as
the credit bureaus have completed their investigation, any
accurate negative information will be returned to your credit
report, and you'll be back where you started, minus the fees that
you paid to the scammer.
The key concept to remember when it comes to your credit
report is that accurate entries will stay on that report for
seven years from the time they're reported to the credit
agencies. Bankruptcies stay on a report for fourteen years.
There are many honest companies that can help you with debt
problems. But how can you know if a company is legitimate? First,
scammers will ask for their money up front, while legitimate
credit repair companies can't require payment from their clients
until they've performed the services they've promised. In many
states, they must also give you a detailed written contract,
clearly explaining your legal rights and giving you the option to
cancel within three days.
The bottom line: know who you're dealing with when it comes to
trying to repair your credit. Mistakes can cost you dearly, doing
even more damage to your credit, creating even more debt
problems, and sometimes costing large amounts of money.
Copyright © 2005 Jeanette J. Fisher - All Rights
Reserved.
Forget what you've been told about credit. "Credit Help!"
author Professor Jeanette Fisher was forced into becoming a
credit expert. She loves helping people buy houses. Get the
credit you need to buy one house or twenty. Visit Real Estate
Credit Help Center: http://www.recredithelp.com
MORE RESOURCES:
Credit - Google News
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