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The Truth About Credit Repair

A significant industry has emerged offering to help repair people's credit rating. If you are dealing with bad credit, credit repair services may look very attractive. Every day, companies nationwide appeal to consumers with poor credit histories. Many of these companies say they offer legal credit repair. That's just an advertising tactic to convince anxious consumers to pay money for services that will not improve their credit.

You may see these in the newspapers, on TV and on the Internet. You may also hear them on radio or even get fliers in the mail. You may receive a call from telemarketers offering their credit repair services.

They all make the same false 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.

Fraudulent companies sometimes offer to provide consumers with different tax identification or social security numbers in order to create a new credit file. This practice, called "file segregation," is illegal, and it doesn't work. Be wary of any company that offers you a guarantee, no one can fulfill that promise. Organizations that violate the law can be sued for actual damages, punitive damages, and attorney's fees.

According to the FTC, the main warning signs of a bad credit repair service are:

  • The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
  • The company doesn't tell you your rights and what you can do for yourself for free.
  • The company recommends that you do not contact any of the three major national credit reporting companies directly.
  • The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.
  • The company suggests 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.
  • The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness

If you have been the victim of a credit repair scam you have the right to sue the credit repair company under the Credit Repair Organizations Act. If you've been taken advantage of by a credit repair organization, contact the FTC. You can file a complaint at www.ftc.gov or by calling 1-877-FTC-HELP.

No one can legally remove accurate and timely negative information from a credit report. The law, does however allow consumers to request an investigation or reinvestigation of the facts and information in your credit file that you dispute as inaccurate or incomplete. There is no charge for this investigation.

The bottom line is that there is nothing a credit repair service can do for you that you can't do for yourself. Anyone can improve their credit score with the right tools and information. The Complete System to Repair Your Credit and Boost Your Credit Score will provide you all the tools necessary to solve your credit problems. Download Today!