To state the obvious, having good credit is very important. A bad credit history can prevent you from getting a loan, job or new home. If someone promises to “fix” your report it may be tempting, but more than likely it’s too good to be true. There is a reason that on the Federal Trade Commission website they explicitly say they have never seen a legitimate Credit Repair Company . Here are some tips to avoid Credit Repair Fraud:
- Credit Repair services can’t ask for payment until they’ve kept their promises. Federal law also requires credit repair services to give you an explanation of your legal rights, a detailed written contract and three days to cancel services.
- Be cautious about emails for credit services. Many unsolicited emails are fraudulent.
- No one can erase negative information if it’s accurate. Only incorrect information can be removed. Accurate information stays on your record for 7 years from the time it’s reported (10 years for bankruptcy). Even information about bills you fell behind on but now are paid in full will remain on your report for these time periods.
- Know that you can’t create a second credit file. Fraudulent companies sometimes offer to provide consumers with different tax identification or social security numbers in order to create a new credit file. This practice, called “file segregation,” is illegal, and it doesn’t work.
As long as people remain ignorant of financial matters, there will be people who will try to steal from them. Nowadays robbers do not wear a ski mask and carry a gun. They have business cards and offices. Have you or someone you know been scammed by these people? I would love to hear your story.
1 Comments until now.
This was a great article. I had not realized that there was a problem with credit repair scams before this. Thank you for sharing.
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