Don’t Fall for a False Credit Repair Promise
The advertisements are everywhere, on television, in newspapers, and on the Internet. You hear them on the radio and get fliers in the mail. You may even be getting calls from telemarketers offering credit repair. Don’t believe their claims.
When it comes to miracle offers for credit repair, there are sure signs of a scam. You should seriously doubt any company that wants you to pay for credit repair services up front. You should also question companies that don’t tell you your legal rights or the things that you can do for yourself for free. Don’t put your trust in a company that recommends that you don’t contact the credit reporting companies directly.
Also be wary if a company encourages you to take any action that seems illegal, like creating a new credit identity and new credit report by applying for an Employer Identification Number to use in place of your Social Security number. Following illegal advice could subject you to prosecution. You could end up being charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It is a federal crime to lie on any loan or credit application, to misrepresent your Social Security number, or to obtain an Employer Identification Number under false pretenses from the Internal Revenue Service.
Save yourself some grief, money, and time. The only way to improve your credit report is with time, a major effort, and debt repayment. The good news it that you can improve your credit and there are resources available where you can turn for low or no-cost help.
Everything a credit repair clinic can legally do for you, you can do for yourself at little or no cost. Although no one can remove accurate and timely negative information from your credit report, you are allowed to ask for an investigation of information in your file that you think is inaccurate or incomplete. This is a free request. You are also entitled to a free credit report if any company denies your application for credit, insurance, or employment and you ask for your report within 60 days of receiving notice of the action. You are also entitled to one free report a year if you are unemployed and plan to look for a job within 60 days, if you’re on welfare, or if your report is inaccurate due to fraud, including identity theft. This is in addition to the free copy of your credit report that each of the nationwide consumer reporting companies, Equifax, Experian, and TransUnion, is required to provide you with once every 12 months.
These three companies have set up a central website, a toll-free telephone number, and a mailing address where you can order your free annual report. To order, go to annualcreditreport.com, call 1-877-322-8228, or write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time.
While there may be no quick fix for bad credit, there are ways to find out exactly what your situation is and work to improve your overall credit score. There are also non-profit consumer agencies available to help you for little or no charge. The Consumer Credit Counseling Service (CCCS) is a non-profit organization that provides free or low cost counseling and guidance to people experiencing financial difficulty. The National Foundation for Consumer Credit (NFCC) is a non-profit organization dedicated to educating consumers in the wise use of credit and the parent group for Consumer Credit Counseling Service. You can easily contact either of these agencies through the internet or telephone and ask for help. That’s what they’re there for!