Credit Repair - Beware
If you have ever seen or heard advertisements that promise to hide your negative credit information and to establish a new credit identity, BEWARE. It is probally credit repair which is often illegal. Credit repair companies usually make illegal or false claims to lure consumers into joining there program. People with poor credit histories are targeted by credit repair companies, particularly those with recent bankruptcies who may have difficulty getting new credit or loans. They falsely claim they can legitimately erase bad credit; remove bankruptcies, judgments, and liens; and create a new credit identity. Fees are usually charged for these legal steps you can easily attempt to do yourself. Credit repair companies can not improve your credit report or erase negative and accurate information for you. Want to rebuild your credit record then you should make a conscious effort to pay off your debts. Keep in mind also that there is nothing a credit repair agency can do for you legally that you can’t do for yourself. By law, you can dispute, at no charge, any credit report information that is incorrect or incomplete.
What credit repair companies do is they usually offer a fee-based service that instructs consumers to apply to the IRS for an Employee Identification Number (EIN). EIN numbers are used by legitimate businesses to report financial information to the IRS and the Social Security Administration. They then direct you to establish a new mailing address, phone number, and a few credit references. Lastly, the credit repair company will instruct you to use your EIN number that you receviced in place of your Social Security number when applying for new credit. Fees for this service range from a few hundred to a few thousand dollars. The Credit Repair Organizations Act prohibits organizations from providing false claims regarding credit repair and restricts such companies from charging any fees until services are carried out. The law also requires that credit repair companies inform consumers of their legal rights in a written contract. This contract should include notification of all services performed, the time it will take to execute these services, total cost, any guarantees, and an explanation that consumers have three days to cancel the service at no charge.
If you are having trouble paying off your unsecured debt, you should try our credit counseling organization we can help you lower your monthly payment and get out of debt quicker. Our debt consolidation program enables you to get rid of your unsecured credit card debt without the hassles of trying to do it yourself. We help you help yourself.
- May Cut Payments up to 70%
- Make One Low Monthly Payment
- Elimination of past-due collection calls
- Account re-aging
