You see the ads in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims:
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"Credit problems? No problem!" "We can erase your bad credit—100% guaranteed." "Create a new credit identity—legally." "We can
remove bankruptcies, judgments, liens, |
Do yourself a favor and save some money too.
Don't believe these statements. Only time, a conscientious effort, and a plan for repaying your debt will improve your credit report.
The Scam
Everyday, companies nationwide appeal to consumers with poor
credit histories. They promise, for a fee, to clean up your credit
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 do nothing to
improve your credit report; many simply vanish with your money.
The Warning Signs
If you decide to respond to a credit repair offer, beware of
companies that:
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's a federal crime to make false statements on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Numbers from the Internal Revenue Service under false pretenses.
The Credit Repair Organizations
Act
By law, credit repair organizations must give you a free 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 consumer protections.
For example, a credit repair company cannot:
Your contract must specify:
If You Are A Victim — Where
to Complain...
If you've had a problem with
any of the scams described here, contact your local consumer protection
agency, state Attorney General (AG), or Better Business Bureau. Many AGs
have toll free consumer hotlines. Check with your local directory
assistance.
The Federal Trade Commission enforces a number of credit laws and provides consumers with free information about them:
The Equal Credit Opportunity Act prohibits the denial of credit because of your sex, race, marital status, religion, national origin, age, or because you receive public assistance.
The Fair Credit Reporting Act gives you the right to learn what information is being distributed about you by credit reporting agencies.
The Truth in Lending Act requires lenders to give you written disclosures of the cost of credit and terms of repayment before you enter into a credit transaction.
The Fair Credit Billing Act establishes procedures for resolving billing errors on your credit card accounts.
The Fair Debt Collection Practices Act prohibits debt collectors from using unfair or deceptive practices to collect overdue bills that your creditor has forwarded for collection.
There three major credit bureaus in the United States that may have a credit history on you.
Or you can get your credit report Qspace A.K.A. Iplace
Iplace Credit Report Online three bureau merged credit report, single credit report with a credit score, or a free credit report, and a credit monitor that lets you know what's going on with your credit on a ongoing bases.