The Down and Dirty About Credit Repair

Even though this blog is about shopping, product news and reviews, I've decided to take this weekend to talk about credit repair. I know a lot of people including personal friends who have credit problems and are frustrated and looking for a solution.

The truth is Credit is a way of life for most Americans, which is why having an accurate credit report is so vital for today’s consumer. And since nearly 80 percent of all credit reports contain inaccuracies, many people seeking help are turning to businesses that offer credit report repair services.

You see the advertisements 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:

* “Credit problems? No problem!”
* “We can erase your bad credit — 100% guaranteed.”
* “Create a new credit identity — legally.”
* “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

Some credit repair agencies have even posed as credible law firms to falsely persuade you that a retained, licensed, legal professional is working on your credit case. Be wary of any credit repair agency that won’t fully disclose their company information and/or verifiable identity, provide a complete address (beyond a Post Office Box), or demand large fees in advance of services rendered. Credit repair agencies have been heavily regulated because of the effects of unethical and illegal credit repair practices.

The Warning Signs
If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:

* companies that want you to pay for credit repair services before they provide any services.
* companies that do not tell you your legal rights and what you can do for yourself for free.
* companies that recommend that you not contact a credit reporting company directly.
* companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
* companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

My next posts will be on Where to Get Your Free Credit Report and How to Request, Addresses for the Big Three Credit Reporting Agencies.

How To Read Your Credit Report and What the Symbols Mean, Repair Your Own Credit - Should You Choose and Sample Dispute Letter.

Repair Your Credit Report Today!