Credit Repair part 1: Self Help May Be Best

Real Estate Agent with Austin City Living

Credit Repair: Self Help May Be Best

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims:

·                           "Credit problems? No problem!”

·                           “We can erase your bad credit — 100% guaranteed.”

·                           “Create a new credit identity — legally.”

·                           “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

Do yourself a favor and save some money, too. Don’t believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.

This brochure explains how you can improve your creditworthiness and gives legitimate resources for low or no-cost help.

The Scam

Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can’t deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money.

The Warning Signs

If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:

·                           companies that want you to pay for credit repair services before they provide any services.

·                           companies that do not tell you your legal rights and what you can do for yourself for free.

·                           companies that recommend that you not contact a credit reporting company directly.

·                           companies that suggest that you try to invent a “new” credit identity – and then, a new credit report – by applying for an Employer Identification Number to use instead of your Social Security number.

·                           companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.


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Ken Stampe - Grow your e-Profile & Brand - Dallas, TX

I don't know how this post made it without any comments. This is great information, very simple and yet precise! Credit Repair is the newest home-based business concept out there and while there are legitimate credit counseling and repair services, many are people with no expertise or background in credit. Buyer beware, but more importantly, buyer use these guidelines!

 Ken Stampe

Sep 27, 2006 11:03 AM #1
Brian C. Aber - Littleton, CO
Leading Credit Expert

Great Info Stone ..

 Knowing the specifics of the ever-changing laws is crucial. Now if the consumer knows the in's and out's of the laws as well as HTDI Financial and has years of experience doing this work day in day out, they could possibly get the same results.  They can also represent themselves in a court of law, do their own taxes and sell their own homes.  But they hire attorneys, accountants, and realtors everyday to get the job done most effectively and as quickly as possible.



Jul 17, 2007 10:13 AM #2
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