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Reasons Not to Trust Credit Repair Companies
Have
you ever seen the ads for those companies that offer to
repair your credit? This might send you dreaming
to a time when your credit is no longer considered poor but
good, when you can apply for a car loan with a real bank instead
of going through the car dealer’s cronies who charge you an
exorbitant interest rate, and when you can hold you head high
and ask for a credit card with a decent interest rate rather
than those cards where you have to put a deposit down and pay
a monthly fee before they will even talk to you. Sure, the
lure of the quick and easy fix is indeed inviting, yet do these
promises hold any water? Is it truly possible to get rid of
all those late pays, foreclosure notations, and repossessions
on your record?
In short, the answer is no. If you are still dying to sign
up with one of the credit repair clinics that are ready and
waiting to take your money, here are some reasons not to trust
those credit repair places!
Your idea of a cleaned up credit record and theirs may be
worlds apart, and you still end up paying for it!
For
example, the offer to clean up your credit can mean as little
as their talking to the credit reporting agencies on
your behalf if you find errors made on your credit report.
You do not need to pay somebody good money to do that! You
can easily alert the credit reporting agencies to any mistakes
on your record and demand that they will be fixed. Errors on
credit reports happen every day, and so do consumer phone calls,
emails, and letters that clear them up. You can pull your credit
report, oftentimes for free, at least once a year and attached
to it you will find detailed instructions on how to dispute
mistakes. Verifiable items,
such
as your car’s repossession or collection agency accounts will
remain on your record until you clear them up.
You may end up on the wrong side of the law.
A conviction for fraud will affect your life far more than
a bad credit rating. There are credit repair companies out
there that “harvest” social security numbers and will offer
them to you for sale. You are then encouraged to build a new
credit profile using that social security number, perhaps a
phony address you set up, such as a post office box, and apply
for credit with your new record. Of course, not only is this
highly illegal, but it also does nothing to fix your bad credit
- that is still there.
The credit repair clinic may attempt to “snow” the credit
bureaus.
Of course, the credit bureaus are wise to this move. It involves
the repair clinic inundating the credit-reporting agency with
requests for verification on your behalf. The goal is to overwhelm
the agency with your request for verification, hoping that
they will just go ahead and delete the negative information
without even bother checking it. This will not happen, and
may actually cause legitimate claims to be dismissed by the
agency as being frivolous. Additionally, if by chance some
information will get deleted this way, the fix is only temporary.
Creditors report to the agencies on a monthly basis, and so
any negative notation that got deleted today will be re-reported
next month.
Would you pay $500 for a bit of common sense advice?
Probably not, but the sad reality is that after you but down
your hard earned cash and paid the credit repair clinic, their
method of cleaning up judgments and liens will be by negotiating
with your lien holders and getting them to take your payment
in return for a promise to remove the derogatory item off your
credit report. You can do this yourself by talking to your
creditor directly, and you most certainly do not need to pay
a middleman to do it.
So
– do you really think you should do business with a company
that will promise you things that you can do yourself,
without having to pay a bunch of money for it? Should you be
risking your freedom in order to participate in some shady
deals with social security numbers that are not yours? Of course
not! So – do not trust those credit repair places!
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SolveYourProblem.com
: 2007
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