Credit repair Scams

Credit repair Scams

Check out the following and see if they are familiar to you:

· Credit problems? No Problem!·

. Legally credit a new credit identity!

· 100% guaranteed to erase bad credit!

Do they look familiar to you?

Do they sound too good to be true?

That is because they really are too good to be true. These are the usual claims that shady credit organizations offer their unwary victims. It is usually those people that are struggling with bad credit or bankruptcy that are most vulnerable to such illegal practices because of their desperation to rebuild their damaged credit scores and reports. For a fee, those companies “guarantee” that your credit report will be cleaned up so you can apply and get approved for a car loan, insurance, home mortgage or even get hired for a job. The usual case is that they can’t deliver their claims in the end. There are many cases where after consumers pay hundreds or even thousands of dollars to these companies they mysteriously disappear with their money. The credit scores of consumers even get worst than before and they end up in even deeper problem with worse credit scores.

These CROs claim that they can remove negative information from your credit reports as opposed to credit counselors that provide consumers tips and guidance to help improve their credit reports and scores with the help of better and sound financial management. In general, the services that credit repair organizations offer include 3 steps:

1. The credit repair company asks you to obtain copies of your credit reports from the three major credit bureaus TransUnion, Equifax, and Experian.

2. They then review your credit reports and recommend items that you are supposed to dispute.

3. The credit repair company then contacts the involved reporting bureau and challenged the disputable entries in your credit report.

The plain truth however is that if you have a negative entry on your credit report and it is valid, no one can really be able to remove it legally. The Fair Credit Reporting Act (FCRA) dictates that CROs may, within 30 days, delete entries that are incomplete, inaccurate, or unverifiable. Unless an entry is already 7 years old, the credit reporting agency is not required to remove any accurate information from your report.

If you find that an entry is erroneous or incomplete, you have the legal right to dispute it and without charging you, the credit reporting agency should investigate the dispute. Come to think of it, everything that credit repair organizations offer to do for you legally, you can do it by yourself at little or even no cost at all.

The Federal Trade Commission has long been targeting suspicious credit repair organization and shut down those the illegal companies that prey on desperate and needy consumers. Remember that self education is always your best tool against scams and it will help you repair your credit on your own without costing you more on credit repair companies that promise only illegal claims.

Article Source:Rachel Schwartz http://EzineArticles.com/7091863

This article assumes that all credit repair companies are scams…It is like saying that” all financial or mortage companies are frauds…The truth is there are also many credit repair companies that help their clients  save time and improve their credits and lives. It is been said that the 3 bureaus have about 70% mistakes on their reports and how do you know if yours is error free?

credit repairLike almost anything else you can do it yourself or use the legitimate experts in the credit repair field.

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