Family Issues

You can see them anywhere – televisions, newspapers, advertising billboards and in the Internet.  Perhaps you might even have received telephone calls from telemarketers.  The issue : Credit Repair.

There is an emergence of companies that promise consumers with poor history in their credit to fix their credit report for a fee.  A credit report allows an individual to get a car loan, apply for a credit card or insurance.  If an individual has a bad record of credit, there is a slim chance of being approved when applying for a loan.  Sounds Good! Hold on, folks.  The truth is they simply ask for money but leave your credit report as is.
Before jumping in to any offers from a company to fix your credit, it is important to be aware of some warning signs to recognize a scam.

The Warning Signs

•    Asking for a fee before rendering their services.  This is illegal according to the Credit Repair Organizations Act.
•    Consumers are not informed of their legal rights
•    Recommend to an individual not to directly get in touch with a credit reporting company
•    Suggesting to an individual to apply for an Employer Identification Number rather than the Social Security Number.  It is a crime to illegally use your Social Security Number
•    Advising consumers to challenge all information in the credit report and take action by creating a new identity

According to the Fair Credit Reporting Act, there should be no fee to be charged in challenging information on a credit report.  Consumers are entitled to get a copy of their credit report from credit reporting companies without any obligation once a year.  The law even permits consumers to have any misrepresented data on their report investigated.

While you may be a good creditor, it is advisable that you study your own credit report periodically.  This is important because the information on the report affects your chances of getting credit and the amount it will cost.  This will also ensure that the information is accurate, detailed and updated.  Most of all,  this important to protect your personal information from being used by another person.  Your personal information may be used to open a new credit card account on your behalf.  Then, when that person becomes a delinquent payer, this is reflected on your credit report.

Some of you may have already been victimized by these companies.  Remember, you are legally bound to protect your rights by reporting these unscrupulous companies.  A bad credit record does not disqualify a person from applying and being approved for credit.  Protect yourself, save others as well.

Tags: Bad Credit, Credit Repair, Bankruptcy, Money Lenders, Debt