Don't Fall For These Credit Repair Scams

You see the ads everywhere, online, television

, radio. FAST Credit Repair! Wipe Your Credit Report Clean! Eliminate Bad Debt From Your Credit Report! Can it be true?

For people with bad credit, finding an easy way to get out from under a heavy debt burden is very tempting. But the sad fact is that the "fast" credit repair offers are usually just scams, designed to take your money and result in no better credit than before.

Some of the most common tactics are:

1. Claiming to "wipe your credit report clean". This usually involves getting an employer ID, which the debtor then uses as their new social security number when applying for credit. It's easily discovered by creditors, who have access to prior addresses, employment, and other information and are not just looking at a social security number. Lenders look at a new business with no credit history and make the determination to grant credit based on the personal history of the principles so you're not any further ahead with this method.

2. Claiming to get you immediate credit no matter how bad your credit score is. This too often involves getting a business line of credit based on an employer ID and not your personal social security number. The terms of these loans can be outrageous, if you even successfully qualify many creditors still want you to see your personal credit!

3. Reducing the amount of your debt by 20, 30, 50% or more. These debt settlement companies agree to help you cut down your debt for a huge fee. While they negotiate with the lenders for new lower balances, they're collecting payments from you and holding them until the lender agrees to the new balance amount.

There is a risk with debt settlement. Lenders will often decide to pursue legal action if they believe the creditor is going to default. Hiring a debt settlement company might trigger that legal action. Until the loan is paid off at the agreed to amount the lenders have the legal option of pursuing litigation.

Another down side is that while you might have lowered your debt, the amount you're not paying will show up as a "charge off" meaning the bank didn't collect it. This is a big a black mark on your credit report as any.

Be careful when applying for "fast" credit repair programs. Most likely they'll turn out to be scams and leave you in a worse position.

by: Dee Power

POST COMMENT

Information Technology Forum For Windows Xp Maintenance Tips to Prevent Pool Repair Remove all cracks with Foundation repair Instruction: How To Rip Dvd To Avi On Windows/mac An Experienced Roof Company Can Do A Lot More Than Simple Repairs How to put up shrink wrap window film kits on your windows to block the cold drafts What To Do If We Lost Windows 7 Administrator Password Buying New Windows? Make Sure You Check A Few Things First! Direct Bonding – Beautiful and Affordable Restorations and Repairs Windshield Chip Repair Or Windshield Crack Repair Through Your Membership Why Using Mobile Glass Windshield Repair In Austin Tx Is The Best Option Windows VPS Hosting - Which are the Main Benefits? Playa Vista Homes For Sale