Credit repair tip: Don’t Get Scammed When Repairing Your Credit!

Create an action plan for repairing your credit. Research the steps you can take on the Internet and put them into practice over the next six months. You will soon notice a difference in your credit score.

If you are in trouble financially these days, then you may be want to answer an ad from a company that offers you an entirely new credit identity or history, or remove bad marks from your credit report — whether or not they are true.

The real truth of the matter is, there are no shortcuts to building a great credit rating — it will take your time and effort to make it a reality. Meanwhile, beware of scams and traps so you will not fall victim to any questionable credit repair companies or services.

We have put together some guidelines to help you:

First of all, be aware of any company that says they can remove true marks from your credit report. Generally, a credit repair scam will try to bombard the credit reporting agencies with inquires and hope that they will not respond in the given time-period or will simply take off the remarks to stop the incoming letters.

Here’s the truth: even if the scam operation does manage to get a few bad marks removed from your credit report, they can always be added on again should the lender prove that the bad marks were true.

Next, run as fast as you can from any company that offers to get you a new credit identity! Not doing so could land you in jail! Why? Their mode of operation is to get you to apply for a tax identification number, which has the same number of digits as your social security number, and then use it whenever applying for credit. The number will come up “clean,” and you will not have to pay the consequences for your past bad marks. Now, here’s the downfall. Lying to the federal government about your intended uses for a federal ID number is a federal offense—and guess who will take the rap? That is right , YOU! The person who actually filled out the forms “under penalty of law.”

If you have been declared bankrupt in the past, seek help from a credit counselling service. They can give you professional advice regarding practical credit repair.

Another sure sign that a company is operating a scam, and is not a true credit repair company, is if they try to pressure you into signing a contract with them. They will likely want large, upfront fees and will tell you that the offer expires today, or some other high pressure tactic. A company that is truly concerned about helping you repair your credit will never pressure you or try to trick you into signing a contract with them. In addition, they will make it clear that if you do change your mind within three days of signing, it’s the law that you will be released from any obligation.

Finally, you should accept that fact that no one can “repair” your credit if you’ve truly made some errors in the past. The only way to build a good credit report is to pay your bills on time, not extend your credit limits, and be careful not to apply for too many credit lines. Do all these things on your own and you will soon find yourself with a great credit report!