subject: Credit Repair Companies and Scams [print this page] If you've recently had an application turned down because of bad credit, you know the importance of good credit as well as anyone. Having bad credit can make life a little inconvenient. You might find yourself paying high security deposits or getting turned down for credit cards, loans, and even jobs.
Credit repair services look very attractive when your credit is damaged. Many consumers who've used these companies have found themselves out of hundreds, even thousands of dollars, with no better credit than when they started. Credit repair scams are rampant and it's up to you to recognize them.
As an educational information, here is a list of common credit repair scam techniques that you should know in order to prevent falling victim to credit repair scams.
1. Companies that charge low monthly fees; Most of these companies will drag their feet to prolong the process in order to charge you more money in the long run, and probably not even produce many improvements.
2. Companies that do not inform you of your legal rights and what you can do on your own for free.
3. Companies that discourage customer contact with the credit bureaus.
4. Companies that guarantee removal ofALLnegative items. No company can legally or ethically guarantee to remove all of your negative accounts, however they can offer a money back guarantee.
5. Companies that send you unsolicited emails, many of these come from fraudulent sources.
6. Companies that cannot or will not help your obtain your credit reports.
7. Companies that are not registered with the Secretary of State and bonded.
8. Companies that do not provide you with a general time frame for your case. Most cases can be completed in about 6 months.
9. Companies that urge you to create a new credit profile by applying for an EIN (Employer Identification Number). This is illegal.
10. Companies that advise you to lie on loan applications or suggest you establish a different identity. This is not only dishonest, it is illegal.
11. Companies that promise to pay your creditors from money you pay them that is placed in an escrow account. This proposition is merely a scam, and the debtor is the loser.
12. Companies that try to pressure you to join their program without providing you with a contract.
13. Companies that claim to repair your credit within a few days or a month. Your credit was not ruined overnight and it will not be fixed overnight!
14. Companies that have a 900 phone number should be avoided at all times. Any reputable company would have a toll-free number.
