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Credit
Repair: Is Self Help Best For You
by
Carl Hampton
10/06/2006
It now seems almost impossible to turn on
the TV or open a newspaper any more without
seeing another advert for some credit repair
service. My email box is overloaded with
subject titles like “Credit problems? No
problem!” or “We can erase your bad
credit — 100% guaranteed.”. This must be
a great business to be in, some of these
companies are now using telemarketers to
offer their services. They all seem to make
the same misleading claims, “Create a new
credit identity — legally.” or “We can
remove bankruptcies, judgments, liens, and
bad loans from your credit file forever!”
Don’t for one moment believe these
misleading statements they are nothing more
than a scam, lies designed to get their
hands on your hard earned money. These
companies appeal to anyone who has a poor or
bad credit history. They will often promise,
for a fee of course, to clean up your credit
report. This will then allow you to get that
car loan you wanted or that mortgage you
were turned down for, maybe you need a higher
score to secure a job. The real truth is,
most of them can’t or won't deliver what
they promise you. Once you have paid them
hundreds or sometimes even thousands of
dollars in fees these companies normally do
nothing to improve your credit score what so
ever. Some will simply just vanish with your
money. There really is only one way to clean
up your credit report and that takes time, a
conscious effort on your part and a personal
debt repayment plan that will improve your
credit score over time.
Here are some warning signs to look out for
should you decide that you would rather use
the services of a credit repair company
rather than do the work yourself. Stay away
from companies that fail do tell you your
legal rights, they must by law tell you what
you can do for yourself for free. A big red
flag to watch for are companies that
recommend that you do not contact a credit
reporting company directly. Do not give your
money to any company that suggest you try to
invent a “new” credit identity, with a
new credit report — by applying for an
Employer Identification Number to use
instead of your Social Security number.
Please keep in mind you could be 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 or give misleading
information on a loan or credit application,
to misrepresent your Social Security number,
and to obtain an Employer Identification
Number from the Internal Revenue Service
under false pretenses.
The Truth, The Whole Truth and Nothing But
The Truth
It is not possible to legally remove any
negative information from your credit report
that is accurate. The Fair Credit Reporting
Act (FCRA) does allow you to ask for an
investigation of any information listed on
your credit report file that you dispute as
inaccurate or incomplete. There is no charge
to you for this service. Everything a credit
repair clinic or service could do for you
legally, you can with a little time and
effort do for yourself at little or no cost.
According to the Fair Credit Reporting Act (FCRA),
You are entitled to a free credit report if
a company takes adverse action against you,
like denying your application for credit,
insurance, or employment, and you ask for
your report within 60 days of receiving
notice of the action. The notice will give
you the name, address, and phone number of
the consumer reporting company.
You are now also entitled under the Fair
Credit Reporting Act (FCRA) to one free
credit report from each of the consumer
reporting companies, Equifax, Experian, and
TransUnion report once a year, the year runs
from September to end of August. You will
also receive an updated report every time to
submit a change to your report or ask for an
item to be investigated, giving you the
results of the investigation. The free
credit reports will list all of the items
shown on your credit report but will not
come with your credit scores, these you are
required under the Act to pay for, normally
around $5.00 from each provider.
Have an opinion or a question you would like
me to answer, then write me!
http://www.CarlHampton.com
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