Watch Out For Credit Repair Posers
In the issue of repairing your credit, it is best to do it yourself. Most often, you may hear or see advertisements claiming outstanding credit repair services offering you “legal” and “guaranteed” solutions for your credit problems. These services may use motto’s that are quite enticing to those who are in dire need of credit repair. There are even others who get easily convinced after reading “authentic” testimonials from several customers, who might not actually exist.
When you are really in need of credit repair, the first thing you want to do is to act immediately. You should remember that this action should be done by you and not anyone else. Luckily, there are several factors that can help you avoid scam credit repair services.
Fraudulent Credit Repair Services
Vulnerable people who have a poor credit track record are targeted by many unscrupulous companies who promise them a magical solution to their problems. For a price, that is. They not only promise to tidy up your credit report but to also help qualify for loans and insurance. Instead of improving your financial circumstances these credit repair scams can do you real harm. Such businesses regularly vanish into thin air.
How Do We Recognize a Scam?
There are, however, some genuine credit repair services, so how can You separate the good from the bad? A sign that is an absolute give-a-away is when a company requests payment in advance for their credit repair services. Another indication that a service is scamming you is if it does not give information about their legal rights.
There are companies that advise consumers to directly contact a credit reporting agency – you should avoid such companies. More so, if the company you have responded to suggests that you to create a new credit identity and then make a new credit report by applying for an Employer Identification Number to use rather than you SIN, you should immediately stop contacting that company.
Last, but not least, credit repair services that say you should argue about everything in your credit report are just wasting your time. In fact, avoid all companies that even hint at doing anything illegal.
It is important to understand that if you supply false information when applying for credit by phone or mail, you can be prosecuted for wire or mail fraud. Under Canadian law, lying on your application for credit, lying about your SIN or fraudulently applying for a new SIN from Revenue Canada are all federal crimes. Under the Credit Repair Organization Act, credit repair companies are prohibited from requesting payment from consumers before they have fully delivered on all promised services. In other words, any credit repair company requesting upfront payments is in breach of the law.
Under the Credit Repair Organization Act, credit repair companies are prohibited from requesting payment from consumers before they have fully delivered on all promised services. In other words, any credit repair company requesting upfront payments is in breach of the law and is not acting ethically.
The best possible way to avoid poor credit history, and totally keep you safe from fraudulent credit repair services, is to do a periodic credit report review. Reviewing your credit report is important because the information in your report affects your chances of getting an insurance or loan. Make sure that the information is correct, complete and regularly updated before applying for a loan. Lastly, by doing periodic check-up on your credit report, you can be safe from identity theft, which can create a major problem not only in your credit report.
Tags: credit repair, credit repair advice, credit repair scams, credit repair services, need credit repair