Identity Fraud - Why You Need To Understand Credit Repair Law
If you have been a victim of identity fraud you will understand the emotional damage this type of crime can cause
. The fact is identify theft is increasing due to our undying love of the credit card and whether you have been a victim of identity theft or not you need to be aware of credit repair law.
Identity theft involves a criminal or organized gang who use another person's identity to apply for loans, credit cards and even for government housing. For victims this can be a frightening experience knowing that someone has not only taken your identity and used it for their own financial gain but also realizing the damage caused to your credit rating.
The credit repair law takes effect when you become a victim of identity theft and the law sets out the conditions and procedures relating to what happens to the criminal and the victim of the crime. The rise of identity theft has resulted in many credit repair companies offering services to help victims repair their credit however, many of these companies turned out to be scams themselves.
Credit repair can be a long, tedious and expensive process to ensure all fraudulent information is removed from your financial records. There are reputable credit repair companies out there that can speed up this process for you however, you need to use your own due diligence before choosing one to help you.
What many people do not realize is that they can do lot by themselves to repair their credit rating. The first step is to look at the debt you have acquired yourself and approach your debtors with a clear and honest appraisal of your financial situation. If you show that you are sincere in wanting to pay the debt back then they will be willing to devise a repayment plan that will benefit both parties.
Until your credit rating is fully repaired this repayment process will take time however, by agreeing to a payment schedule and showing your commitment to paying it off as soon as possible your debtors should show you more leniency.
If your debtors are not willing to wait then you may have the option to apply for a debt consolidation loan. This type of loan is helpful if you're under such pressure as it enables you to pay off outstanding debtors and leaving you with just one single loan to manage and repay. As with any type of loan you need to be disciplined and ensure you budget effectively to meet your repayments each month.
To prevent identity theft do not give criminals the chance to get hold of your personal details. For example, check your bank account and credit card accounts on a regular basis and report any suspicious transactions immediately. Invest in a shredder and shred any papers, letters or invoices with your contact and bank account details on it and that includes expired credit cards. As they say, prevention is better than cure.