Article Advise

submitted: Aug 16th 2008 | by: HenryRockwood | Total views: 1 | Word Count: 519 | |

Credit repair scams are all around us as credit report repair has become a big business these days. An independent credit repair company or consultant could be just what you need if you don't have the time or the patience to dispute inaccuracies on your credit report yourself and if you want to know other methods of improving your credit score.

How are you able to determine who is real? That's why the Credit Repair Organizations Act was passed, as it can help you do just that. If you know what to look for, you will be able to successfully avoid scammers.

1. Make sure you look at different companies to get an idea of the way they all do business. In general as well as for this industry, it is better to avoid marketers contacting you directly by mail or phone. Until you see other companies, do not sign anything, even if you are meeting them and are under pressure.

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. You have the right to repair your own credit, and they must inform you of that. Unless you want to, you do not need to hire anybody. You should be suspicious if this isn't mentioned on their written information.

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.

File segregation is appealing, sure, but it is equally risky for you if the credit repair company is tapped. You would be participating in something illegal. If one of their clients decides to report them, all their records will be scrutinized in great detail, causing trouble for their other patrons; including you.

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.

Many companies that promise credit score improvements are, in fact, legitimate. Avoiding common credit repair scams will be easy, if you remember these points.

About the Author

About the author:Henry Rockwood now earns a regular stream of revenue by working from his home. Ever since going bankrupt seven years ago, he has succeeded in pulling through and has a fantastic online job at home.credit repair

Comments

No comments posted.

You do not have permission to comment. If you log in, you may be able to comment.