Don’t Call Those Credit Repair Companies Until You Read This
Posted on October 21, 2008
Filed Under Credit |
Welcome back!
We see them everywhere. Claims to easily fix your credit problems. Wipe out bankruptcies, even create a new identity to avoid the problems you are in.
Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can’t deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money.
Here are the Signs You Are About to Get Scammed
If you decide you want someone to help and you call one of these credit repair companies, keep your eyes and ears open for these signs you are about to lose money and make your situation worse.
* companies that want you to pay for credit repair services before they provide any services.
* companies that do not tell you your legal rights and what you can do for yourself for free.
* companies that recommend that you not contact a credit reporting company directly.
* companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
* companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
It is illegal to use the mail, internet or phone for credit and you lie on the application. You cannot misrepresent your social security number or to obtain an employer identification number (EIN) under false pretenses. Credit repair companies are also not allowed to charge you any money until they perform the services you contract with them to perform.
What They May Not Tell You
If the information on your credit report is true, no one can remove it, even if it is negative. But you can request that a negative item be investigated and removed if it is not accurate. The bottom line is that you can do whatever credit repair company can do. It just takes some effort and time on your part.
3 Things You Should Know
1. If you are denied credit, you are entitled to a free credit report. You have to make your request within 60 days of learning that your application for credit was denied.
2. You are also allowed to request a free credit report from aech of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — once every 12 months. Just go to www.annualcreditreport.com to enter your request, or call 1-877-322-8228.
3. If you find mistakes on your credit reports, you can dispute them for free.
It does take some time and work to correct the errors on your credit report. But you will realize that you don’t need to spend extra money to accomplish the same thing the credit repair companies offer. Nevertheless, if you do decide to use one, check them out thoroughly, get references, read reviews and do not pay money up front before your chosen credit repair company has performed the services they promised.
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