Credit
Repair: Is Self Help Best For You
It now seems almost impossible to turn on the TV or open a
newspaper any more without seeing another advert for some
credit repair service. My email box is overloaded with subject
titles like “Credit problems? No problem!” or “We can
erase your bad credit — 100% guaranteed.”. This must be a
great business to be in, some of these companies are now using
telemarketers to offer their services. They all seem to make
the same misleading claims, “Create a new credit identity
— legally.” or “We can remove bankruptcies, judgments,
liens, and bad loans from your credit file forever!”
Don’t for one moment believe these misleading statements
they are nothing more than a scam, lies designed to get their
hands on your hard earned money. These companies appeal to
anyone who has a poor or bad credit history. They will often
promise, for a fee of course, to clean up your credit report.
This will then allow you to get that car loan you wanted or
that mortgage you were turned down for, maybe you need a
higher score to secure a job. The real truth is, most of them
can’t or won't deliver what they promise you. Once you have
paid them hundreds or sometimes even thousands of dollars in
fees these companies normally do nothing to improve your
credit score what so ever. Some will simply just vanish with
your money. There really is only one way to clean up your
credit report and that takes time, a conscious effort on your
part and a personal debt repayment plan that will improve your
credit score over time.
Here are some warning signs to look out for should you decide
that you would rather use the services of a credit repair
company rather than do the work yourself. Stay away from
companies that fail do tell you your legal rights, they must
by law tell you what you can do for yourself for free. A big
red flag to watch for are companies that recommend that you do
not contact a credit reporting company directly. Do not give
your money to any company that suggest you try to invent a
“new” credit identity, with a new credit report — by
applying for an Employer Identification Number to use instead
of your Social Security number.
Please keep in mind you could be charged and prosecuted for
mail or wire fraud if you use the mail or telephone to apply
for credit and provide false information. It is a federal
crime to lie or give misleading information on a loan or
credit application, to misrepresent your Social Security
number, and to obtain an Employer Identification Number from
the Internal Revenue Service under false pretenses.
The Truth, The Whole Truth and Nothing But The Truth
It is not possible to legally remove any negative information
from your credit report that is accurate. The Fair Credit
Reporting Act (FCRA) does allow you to ask for an
investigation of any information listed on your credit report
file that you dispute as inaccurate or incomplete. There is no
charge to you for this service. Everything a credit repair
clinic or service could do for you legally, you can with a
little time and effort do for yourself at little or no cost.
According to the Fair Credit Reporting Act (FCRA), You are
entitled to a free credit report if a company takes adverse
action against you, like denying your application for credit,
insurance, or employment, and you ask for your report within
60 days of receiving notice of the action. The notice will
give you the name, address, and phone number of the consumer
reporting company.
You are now also entitled under the Fair Credit Reporting Act
(FCRA) to one free credit report from each of the consumer
reporting companies, Equifax, Experian, and TransUnion report
once a year, the year runs from September to end of August.
You will also receive an updated report every time to submit a
change to your report or ask for an item to be investigated,
giving you the results of the investigation. The free credit
reports will list all of the items shown on your credit report
but will not come with your credit scores, these you are
required under the Act to pay for, normally around $5.00 from
each provider.
Have an opinion or a question you would like me to answer,
then write me!
http://www.CarlHampton.com
“Your” Money Matters By Carl Hampton
From the Author of “From
Credit Despair To Credit Millionaire”
Related Links:
|
