Are companies which claim to be able to resolve or expunge poor credit too good to be true? Well, in a word YES - in most cases. You will have seen adverts in papers and the Internet from credit repair agencies offering credit repair services. They all make the similar claims:
"Credit problems? No problem!"
"We can remove bankruptcies, liens, and bad loans from your credit file forever!"
"We can erase your bad credit - 100% guaranteed."
"Create a new credit identity - legally."
The law is VERY clear on credit repair - bad but accurate credit information cannot be officially removed from credit records, nor can new credit identities be created, bad loans be removed and so on. There are no quick fixes - if it is poor for a reason then no trickery is going to help - hard work will. You can enhance your credit report lawfully, but it takes time and effort.
So, recognizing scams? Credit repair companies target consumers daily who have disfavored credit histories promising to clean up their credit report - once they pay them a fee for the service. Note that last point. No one can supply you with an improved credit report using the tactics they promise - It's against the law: they can't remove accurate negative information from your credit report. Having paid thousands of dollars in fees you are left with the same negative credit report and they have your money.
So, how to tell if the credit repair agency is up to no good:
Most importantly, if they ask for money in advance the advice is simple - WALK. By law credit repair companies cannot call for you to pay until they have accomplished the services they have promised.
The Credit Repair Company doesn't inform you of your rights.
They tell you they can remove of most or all of the bad information in your credit report, even if that information is correct and current.
They recommend that you do not contact any of the three major national credit reporting companies directly.
The company suggests that you try to conceive 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. This is fraud and can get jail time.
The company advises you dispute all the data in your credit report, regardless of its truth. This wastes your time and that of the credit agencies - hardly a way to impress them!
"Credit problems? No problem!"
"We can remove bankruptcies, liens, and bad loans from your credit file forever!"
"We can erase your bad credit - 100% guaranteed."
"Create a new credit identity - legally."
The law is VERY clear on credit repair - bad but accurate credit information cannot be officially removed from credit records, nor can new credit identities be created, bad loans be removed and so on. There are no quick fixes - if it is poor for a reason then no trickery is going to help - hard work will. You can enhance your credit report lawfully, but it takes time and effort.
So, recognizing scams? Credit repair companies target consumers daily who have disfavored credit histories promising to clean up their credit report - once they pay them a fee for the service. Note that last point. No one can supply you with an improved credit report using the tactics they promise - It's against the law: they can't remove accurate negative information from your credit report. Having paid thousands of dollars in fees you are left with the same negative credit report and they have your money.
So, how to tell if the credit repair agency is up to no good:
Most importantly, if they ask for money in advance the advice is simple - WALK. By law credit repair companies cannot call for you to pay until they have accomplished the services they have promised.
The Credit Repair Company doesn't inform you of your rights.
They tell you they can remove of most or all of the bad information in your credit report, even if that information is correct and current.
They recommend that you do not contact any of the three major national credit reporting companies directly.
The company suggests that you try to conceive 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. This is fraud and can get jail time.
The company advises you dispute all the data in your credit report, regardless of its truth. This wastes your time and that of the credit agencies - hardly a way to impress them!
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