Credit Repair is something that many Americans need every year. Statistics show that most Americans have poor credit and the reasons for poor credit are due to bad spending habits and not paying bills on time. When you don’t pay bills on time, it will reflect negatively on your credit report. This can cause a lot of problems in your financial life if you ever need a loan.
Credit Repair is when a third party, usually known as a credit repair company or credit repair services company, tries to get negative information removed off of your credit reports for you in return for money. These firms are for-profit and all their services are sold as being able to fix people’s credit for a price. It really does not matter what company you use, because credit repair information is available for purchase on the internet. Companies that offer credit repair services also advertise that they can fix your credit information for free with no charges to you.
The truth is that many credit repair organizations are just selling you the same old false promises that credit repair companies have been using for years. They say that they can remove information from your credit reports for you and charge you for their service. You do have to be careful of these companies because many of them are downright unscrupulous and can even cost you more money than if they had actually fixed your credit in the first place. If a credit repair organization asks you to pay for a credit repair company to check your credit, this should raise red flags.
For example, some credit repair services advertise that they can have negative items removed from your credit report for a fee of $100. What they fail to mention is that this can take quite a long time to accomplish. Also, you may be required to pay for this service again. Why pay for their “services” if they aren’t giving you the results you want? This type of shady business practice should raise warning flags. If you are ever asked to pay money just to have your credit report checked, this should immediately tell you to stay far away from them.
Another credit repair scam that is common place is for them to promise to completely wipe out your negative items from your credit report and then demand payment in order to do so. This is usually done by requiring you to send them copies of your credit report that they can then distribute to all the credit reporting agencies. In reality, credit reporting bureaus don’t ever have access to your credit report. If they did, they would find things like judgments against you, collection activity, bankruptcies, and civil suits that would show up on your credit report. Credit repair scammers will tell you that they can help you get your credit report cleaned up because they have this secret list that only they have.
If you have tried a few credit repair scams or feel that you have been a victim of one, the last thing that you should do is trust the company with your money. You should instead research each company that you are considering working with so that you can make an informed decision. You should also ask each credit repair company to provide documentation that backs up their claim that they can get your negative information off of your credit history. Remember, if they are looking to profit from your poor financial decisions, then they aren’t really trying to help. They are just looking to take advantage of you.
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