Everyone by now has probably gotten at least one email, junk
mail, or other types of solicitation concerning Credit Repair. The truth is that
around 80% of Americans have credit issues they need to deal with so there is a
huge market for credit repair services.
But with every large market, there is one thing you can be
sure of. It will also draw out the unethical people and the scammers and
thieves as well. In this article, I will tell you about some of the scams and
offer you a little free advice on how to avoid credit repair scams and
rip-offs.
The first thing that should be discussed is that anytime
something sounds too good to be true it most likely is. When you hear or read
the words, “Free”, you should beware. My own website has the word free in it
because I actually provide free information. However, if you were to want me to
do all that is necessary to repair your credit, you can bet you’d have to pay
me for the service.
So, when you see someone offering to fix your credit for
free, ask yourself, “How can anyone work for me for free?” Some claim to be a non-profit
organization only there because they are interested in helping people fix their
credit.
There may actually be one out there that does this and if
you ever dig them up email me a link. For the most part, I would be even more
leery of those that claim to be a non-profit. Even the federal government is
now looking into credit repair organizations that claim to be non-profit.
What these companies or credit repair clinics do is something
you can do for yourself. They dispute claims by creditors. You can do this by
going to the big three, Equifax, Experian, and TransUnion Corporation. If the
creditors fail to respond within 30 days, then the item is removed from your
credit report.
Sounds great right? Well, not exactly. Even if the creditor
fails to respond in the 30-day time period, they can still add the item back
onto your credit report. That means that the money you paid for someone to do
that for you was wasted. You can get a free credit report from each of these
companies once per year. So that is three times per year that you can check up
on your credit report.
According to the Federal Trade Commission Website, “A
federal judge has ruled that a bogus credit repair company and its owner
violated the law by making false and misleading claims, and billing in advance
for its services, and has ordered them to pay more than $322,000. This action
was a result of “Project Credit Despair,” a crackdown on 20 operations that
deceptively claimed they could remove negative information from consumers’ credit
reports – even if that information was accurate and timely.”
If the information on your credit report is accurate and
timely, there is no one that can get that removed for you. The best thing you
can do in that case is to contact the company and make some type of
arrangements to pay off the debt. Offer a cash settlement that is less than the
total amount owed and sometimes they will help you and take the offer. You have
nothing to lose by making that offer and everything to gain.
The FTC advises that only time, a conscious effort, and a
personal debt repayment plan can improve your credit report. The first step is
to learn what information is in your credit report. If you find errors or
mistakes, federal law gives you the right to have them corrected – free of
charge. Federal law requires that the nationwide consumer reporting companies –
Equifax, Experian, and TransUnion – provide you with a free copy of your credit
report once every 12 months, if you ask for it. To order your free report,
visit annualcreditreport.com, or complete and mail the Annual Credit Report
Request Form. Other credit repair information is available on the FTC’s Web
site, http://www.ftc.gov.
I hope this article has helped you to understand about
credit repair. There are some legitimate companies out there. Just beware of
any that tell you that they can remove items from your credit report that are
legitimate debts. If they offer to negotiate directly with creditors or help
you consolidate your debt, then you may benefit from using professionals.
However, on the debt consolidation part, watch that you do not end up paying the higher percentage for interest than you are currently.
Disclaimer:
This article is presented solely as an example and is not meant to replace
qualified financial advice. If you or someone you know require up to date
financial or legal help please seek qualified assistance. No content on this
site should ever be used as a substitute for direct legal advice from your
lawyer or a qualified attorney.
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