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Watch Out For Credit Repair Scams-Learn How to Recognize Them?

Watch Out For False Credit Repair Scams-Learn How to Recognize Them?


 


Everyday, you must be getting numerous calls from credit repair companies which promise to mend your poor credit report. Most of us have been hit by the ups and down of financial market. On the top of it credit crunch has adversely affected the global economy. Of late, many false credit repair companies have mushroomed. They lure people by offering mortgage loans, car loan, cheap insurance policies or even jobs. They bring out schemes to clean up the mess from your credit report. But the truth is that, no credit repair company can actually erase the negative remarks from your credit report.


 


You need to be careful about these credit repair scams. There are illegal credit repair companies who use different tactics to promote themselves. If your credit report has been affected by bad credit, you can find ways to repair it. Many people have become the victims of these false credit repair companies. They fall into the traps of these fake companies in the hope of getting an improved credit report. So, even if you spent paying huge amount for front- up fees, you are left with same poor credit report.


 


According to nations consumer protection agency, the attorneys for Federal Trade Commission, there are very few legitimate credit repair operations. Infact they have also commented that, there is no permanent solution for bad credit. Credit repair can only take place with your conscious effort. If you are offered a credit repair service, see for its authentication. If the company wants you to pay for the services first then, indeed it is a scam.


 


How can you recognize a credit repair scam?


 


      The credit repair company does not make you aware of your rights such as, what you can be offered free of cost.


      Recommends you not to contact the three major credit bureaus.


      Charge you with high amount of fees before completion of their services


      Make commitments to get rid of all the negative information from your credit report.


      Ask you to make a new credit identity and a new credit report through your Employer Identification Number instead of Social Security Number.


      The company advises you to dispute all your credit information, in spite of being inaccurate.


 


All these indicate that the company is not offering credit repair services, but into some kind of scam. So, you need to protect yourself from such false companies. It is advisable that you learn the ways to improve your credit score through a legitimate credit repair company which will charge you no or reasonable fees.



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