by admin on June 22, 2009
Credit Repair Scams: The economy isn’t in the best of shapes and hasn’t been for a couple of years now and many of us who have never had to deal with debt previously are now doing so, and many of us for the first time.
The first step anyone should take is to find out the actual status of their credit and to do this they will need a copy of their credit report from each of the three credit bureaus; Experian, Equifax and TransUnion.
Can you get free credit reports?
Not everyone is aware of this but every single US citizen is entitled to a free credit report from each of the three bureaus every 12 months, the reason many people are not aware of this is that the government and consumer councils will not spend money to advertise this fact.
Credit Report Scams: Unfortunately, this is why many companies will try to take advantage of this lack of public awareness. You may well have seen or heard advertisements on everything from local radio to the internet about how you can receive free credit reports; but just because these ads repetitively mention that the credit reports are free it doesn’t necessarily mean that they are!
In a large number of cases, once these companies are approached, they will ask you to make some kind of purchase or sign up to a third party credit repair or monitoring service before they will release your free credit reports.
by admin on June 22, 2009
It happens; we get behind in our payments and suddenly our credit score starts dropping. But turning to those so-called credit repair companies won’t bail you out of trouble.
It’s so easy to fall into the trap, in these tough times, many of us end up using credit cards just to get by. Now you cant keep up with the payments and your credit score begins to take a hit. Then when it comes to repairing your credit, many ads make it sound effortless, with companies claiming they can clean up your record. But Angie Barnett with the Better Business Bureau says, “Nobody can do that. You really can’t.”
Credit Repair Scams
The BBB says no one can remove negative information from your credit report if it’s accurate and only time can undo the damage. Still, credit repair firms persist, claiming they can get rid of everything from late payments to bankruptcies. And many charge you, often upfront, for their service. But according to a message we found on the Federal Trade Commission’s website, that’s illegal. In that message, Bureau of Consumer Protection Director Eileen Harrington warns consumers, “If a company tells you for a fee they can improve your credit for you, don’t fall for it. It’s a scam. First of all, it’s against the law for any company to take your money before they improve your credit record.”
When it comes to making those improvements, the BBB warns some scam companies may try one tactic to make it look like they’ve helped. They’ll do a blanket dispute for every blemish on your credit report, so those items will come off. But the solution is only temporary according to Barnett, “It’s lifted for 30 days. But on day 31, it’s back on there if it is a valid blemish on your credit report.”
It’s a fake out of sorts that the scam companies are hoping you’ll fall for. But the truth is the work these companies want big money for is something you could try on your own. All you need to do is get free credit reports from the three reporting agencies. The BBB says errors are common, so you need to check out your report and if you find a mistake, dispute it on your own. That method might save you the money you’d spend for so-called credit repair and help you pay down the bills that will truly help rebuild your credit in the long run.