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| Credit Repair Scams: Traps to Avoid |
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| Written by Henry Rockwood |
| Saturday, 16 August 2008 17:18 |
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There are a large number of unethical companies falsely promising you they will repair your credit. If you are not up to addressing the errors on your credit report personally, or if you need more information on improving your credit, you may consider using a credit repair company or a credit consultant. But how do you spot the genuine companies? You can do this by following the provisions in the Credit Repair Organizations Act. Know these signs of scammers and frauds. 1. When looking for a company, get a feel for their different types of standards. As with all services, it is usually better not to respond to people who contact you cold, directly by telephone or letter. By all means shop around, if you do agree to meet with any company, do not let them pressure you into signing anything. 2. Bypass a company that attempts to collect money in advance. Until they have done something for you, you should not pay them. 3. Don't select a company that promises or guarantees the results you'll get - for example, if they promise you an increase of 100 points on your credit score. They can only advertise the average scores from other clients, but this isn't a promise that yours will be that good because they cannot control the outcome. They cannot even accurately estimate your credit score before they eye your report and acknowledge your conditions. 4. Repairing your credit is by yourself is your right which they should inform you. Hiring someone isn't needed unless it's what you want to do. They may not be legitimate if their materials do not tell you this fact. 5. Never enter a contract that the company will not let you cancel. You want a contract that lets you cancel whenever you want. Then, you'd pay for all the work they had already done, but nothing beyond that. 6. Keep far away from any company that offers file segregation. It involves creating a new credit identity for you and is illegal. Keep in mind when tempted to go with the file segregation that if the credit repair company is caught you are as well. You would be breaking the law too. Only one client need be unsatisfied and report the company for all the company's files to be examined? including yours. Most people who have filed bankruptcy will most often receive letters from companies promising they can solve all their credit problems. You will be told that it's legal, but after your new credit file is opened, anytime you apply for credit you will have to lie on the application forms. If you decide to give false information to obtain credit it is considered fraud. There are severe penalties, including monetary penalties and even prison time. Several trustworthy companies willing to help you improve your credit score exist. You won't have any trouble avoiding common credit repair scams if you keep this information in mind. About the Author: About the author:Henry Rockwood is a successful freelance writer and contributes articles on various topics.credit repair Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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