Credit Repair Yourself
Posted by admin under: Main Nov 16There are companies claiming to get rid off negative items from your credit report so that a better credit score gets recorded within a short period. But most of them fail to deliver the appropriate services and customers end up losing money. Even the Federal Trade Commission (FTC) is of the opinion that there is hardly any legitimate company. Therefore, it is better to try and improve your credit score yourself rather than spend more on the services provided by these organizations.
Some services nowadays involve a lot of scams, thereby charging borrowers against false promises of providing better credit rating. Some of the scams are given below:
Credit repair companies may claim that they have fair business relationship with a credit bureau. They deluge the bureau with disputes over the debts recorded in your credit report. These debts may disappear from your report once the bureau starts the investigation.
The credit repair company charges a fee in return of the temporary removal of negative items from your report. Moreover, these companies demand a charge upfront, which goes against the Credit Repair Organizations Act. There are also companies offering services in order to convince creditors that you don’t owe any debt. But this isn’t effective and in the end, you are forced to give up the claim.
Another credit repair scam involves the companies demanding that they can help you get a new clean credit report. Some firms will help customers apply for a new taxpayer’s identification number or Employer Identification Number (also known as EIN) in order to build a new credit history. But this is not a legal process, and the new report carries similar information as in the previous report, although you have a separate identification number.
Credit repair companies may also claim to clean up your credit fast and help you get a mortgage or credit card through their contacts. They demand a lot of money in exchange of such services. But in reality, these organizations pretend to offer credit counseling help or try to act as mortgage companies and finally they leave the customers after pulling out a lot of cash. This is the most popular scam nowadays and the costliest one too.
How can you protect yourself from such scams?
In order to prevent yourself from being a victim of such scams, you can take the help of legitimate counselors. They will, in fact, discuss on your financial details and suggest specific ways to come out of your problems. But before you accept such suggestions, you should consider the following aspects.
Consumers have certain rights under The Credit Repair Organization Act. Any false claim by a credit repair company is prohibited by law and it can’t charge you until it has provided you with its services. Through a written contract, these companies must disclose your legal rights, the services that they are going to perform and the required time period. The contract should also mention the total cost to be charged and any guarantee that may be offered. As a consumer, you have three days to cancel the contract without paying any charge.
If you feel you are a victim of any scam, you may report it to the local consumer affairs office or state Attorney General for justice. You may also lodge a complaint with the FTC that ensures protection of customers against any kind of fraud. The best way to avoid credit repair scams is to make suitable plans for managing personal finance and debt payments. This will ensure a clean credit report and hence a better credit rating.
Self-help credit repair is similar to improving your credit score with a conscious effort from your end. A number of factors affect your credit score; improving the score requires you to take care of those factors such that you can manage your credit better.
To review a free guide to Credit Repair Yourself, Visit:
www.Self-helpCreditRepair.com
As a veteran mortgage broker, my job is to help people qualify for the best interest rate and payment terms. That starts with your credit score. I’ve created a special online guide to give you access to the same rules that seasoned mortgage professionals and credit repair companies use everyday to rapidly increase credit scores and perform credit repair yourself. This guide was compiled from years of experience, research and insight from credit repair companies.
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Source: Credit Repair Yourself
Friday, November 16th, 2007 at 3:24 am and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.