Credit Repair: The 5 Early Warning Signs Of Credit Scams, You Must Know, Today!

Review credit repair myths exposed, 5 early warning signs of credit repair scams!

Learn simple ways to improve credit score from the 3 credit bureau reports, repair credit yourself.

Avoid credit scams!

You see the advertisements in newspapers, on TV, and on the Internet.

You even hear them on the radio. You get the fliers in the mail.

You may even get calls from telemarketers offering repair services.

Companies all make the same claims:

  • Credit problems? No problem!
  • We can erase your bad credit-100% guaranteed.
  • Create a new identity legally.
  • We can remove bankruptcies, judgments, liens, and bad loans from your file forever!

Do yourself a favor and save some money, too. Don't believe these statements. Time, a conscious effort, and a few online repair companies can help you to improve your fico report.

credit repair worksheet

We explain how you can improve your credit worthiness and lists several legitimate resources for help.

The Credit Repair Scam:

Everyday, companies nationwide appeal to consumers with poor histories. They promise, for a fee, to clean up your report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can't deliver.

After you pay them hundreds or thousands of dollars in up-front fees, these companies often do nothing to improve your report, many simply vanish with your money.

Credit Repair: Five Warning Signs!

If you decide to respond to an offer, beware of companies that:

  1. Want you to pay for services before any services are provided.
  2. Do not tell you your legal rights and what you can do-yourself-for free.
  3. Recommend that you not contact one of the 3 top bureaus directly.
  4. Suggest that you try to invent a new file by applying for an Employer Identification Number to use instead of your Social Security Number.
  5. Advise you to dispute all information in your report or take any action that seems illegal, such as creating a new identity.

If you follow illegal advice and commit fraud, you may be subject to prosecution. You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for a loan and provide false information.

It's a federal crime to make false statements on a loan application, to misrepresent your Social Security Number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

Under the credit repair organizations act, repair companies cannot require you to pay until they have completed the promised services.

No one can legally remove accurate and timely negative information from a report. But the law does allow you to request a reinvestigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a repair clinic can do for you legally, you can do for yourself at little or no cost.

According to the Fair Credit Reporting Act:

You are entitled to a free copy of your report if you've been denied a loan, insurance or employment within the last 60 days.

If your application for a loan, insurance, or employment is denied because of information supplied by a bureau, the company you applied to must provide you with that bureau's name, address, and telephone number.

You can dispute mistakes or outdated items for free. Ask the reporting agency for a dispute form or submit your dispute in writing, along with any supporting documentation.

Do not send credit repair companies original documents.

Clearly identify each item in your report that you dispute, explain why you dispute the information, and request a reinvestigation.

If the new investigation reveals an error, you may ask that a corrected version of the report be sent to anyone who received your report within the past six months.

Job applicants can have corrected reports sent to anyone who received a report for employment purposes during the past two years.

When the reinvestigation is complete, the bureau must give you the written results and a free copy of your report if the dispute results in a change.

If an item is changed or removed, the bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the bureau gives you a written notice that includes the name, address, and phone number of the provider.

You also should tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider then reports the item to any bureau, it must include a notice of your dispute. In addition, if you are correct - that is, if the information is inaccurate - the information provider may not use it again.

If the reinvestigation does not resolve your dispute, have the bureau include your version of the dispute in your file and in future reports. Remember, there is no charge for a reinvestigation.

Credit Repair: Reporting Negative Information.

Accurate negative information generally can be reported for seven years, but there are exceptions:

  • Bankruptcy information can be reported for 10 years;
  • Information reported because of an application for a job with a salary of more than $75,000 has no time limitation;
  • Information reported because of an application for more than $150,000 worth of life insurance has no time limitation;
  • Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer;
  • Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions.

The Credit Repair Organizations Act

By law, repair organizations must give you a copy of the Consumer Credit File Rights Under State and Federal Law before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before signing the contract. The law contains specific protections for you. For example, a company cannot:

Make false claims about their services;

Your contract must specify:

The payment terms for services, including their total cost, a detailed description of the services to be performed; how long it will take to achieve the results; any guarantees they offer; and the company's name and business address.

Today, you will have the knowledge and power in your hands to change your life financially!

Learn how to boost your FICO credit score, Call 1-888-551-2845 (5AM - 9PM PST) for a FREE consultation with a paralegal. After hours repair Click Here!

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