Always
make sure you know who you are dealing with before accepting any offer
to help you repair your credit. Those who don’t can have their credit
ruined further and create more debt problems.
“Erase Bad Debt !”
“Remove Negative Items From Your Credit Report”
You’ve probably seen these headlines and others just like it promising
to clean up or “fix” bad credit. For someone who suffers from a bad or
poor credit rating, these headlines are certainly an appealing offer.
Imagine finally being able to buy that new car, get debt collectors off
your back, and enjoy a new found freedom from your past debts.
Sound to good to be true ? It probably is. Once you fall prey to the
credit repair offer and pay the hefty fees involved to clean up your
record, here’s what happens:
1) The credit repair scam artist contacts the credit bureaus and reports that the negative information in your file is false.
2) The credit bureau removes this negative information from your report while they investigate the claim.
3) The scam artist will then show you the cleaned up version of your
credit report and “ta-da” your credit history has been fixed !
But here’s what the scammer doesn’t tell or show you. After the credit
bureau completes their investigation the negative information is placed
back on your credit report.
Negative but accurate information cannot be removed from your credit profile. Only incorrect information can be removed.
Accurate information remains on your credit file for a period of 7
years from the time it is reported to the credit agencies; a bankruptcy
appears for a 10 year period.
Many legitimate companies exist that can help you with your debt
problems. But how do you spot a scam offer ? Easy, they’ll ask you for
their fees up front. By law, credit repair agencies cannot ask for
payment until they’ve provided the service they promised.
Additionally many states require that a credit repair service, whether
they are for-profit or not-for-profit, must provide you with a detailed
written contract, an explanation of your legal rights, and the
opportunity to cancel any signed contract within 3 days.
Also, be aware that a “credit repair offer” could be an attempt to
steal your identity by getting you to provide personal information such
as a Social Security number, bank account and credit card account
numbers.
Always make sure you know who you are dealing with before accepting any
offer to help you repair your credit. Those who don’t can have their
credit ruined further and create more debt problems.
