Credit Matters and Credit Repair

Dedicated to all matters pertaining to credit and credit repair

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Location: Kentucky, United States

Jim Eastman is an avid writer and likes to write on various topics, especially those related to business and financial matters.

Friday, August 21, 2009

Beware Of Credit Repair Scams


No doubt you've heard many, many stories of people who have hired credit repair organizations for help to improve their poor credit, but who have instead been cheated by credit repair scams. So that you can understand what pathway to take to avoid being taken in by these crooks, you need to understand how they function.

They're all too aware of that those who find themselves suffering financial hardship will be desperate enough to believe whatever is told them, in the hope that these fake agencies are really able to help them, so they can regained a peace of mind. They will often be so disheartened by the system, which is downright cruel to those who have poor credit, that they'll do anything whatsoever to get relief.

Most those who seek out help on the verge of declaring bankruptcy. It is these who are the easiest targets of credit repair scams.

And why is this? Because they want fast results, and are unable to internalize the fact that the credit repair process takes at least 6 - 12 months. Very often, they feel that they don't have much time, and unless they take fast action, it will spell future disaster.

Ironically, when they hire such unscrupulous agencies instead of getting themselves rid of debt, they will lose whatever little money they still had, because they've been fooled into chasing a mirage.

Here are the warning signs that alerts you to credit repair scams:

1. They promise miracles

These unscrupulous companies promise to get every negative trade line deleted from your credit report. They will guarantee you that your credit score will improve in an astonishingly short time.

They try to accomplish this by disputing everything negative in your credit report. The credit bureaus may initially remove some or most of the disputed items which they are unable to verify in the space of 30 days. In the meantime, it might look as though this fraudulent agency has delivered on its promise.

But if the bureau verifies the items at a later date, they'll go back on the credit report - plus you will have earned the reputation of being a hustler!

2. They tempt you to bend the rules

They actually break the law with their tactics, such as using other people's identity to increase your overall credit, by offering to give you a new Social Security Number, so that you can "start life afresh." Beware! Such tactics can land you in a lot of trouble. It's not only against the law to take up a "new" SSN, the number could have a police record attached to it, or any such things that will be far worse that having bad debt.

3. They require all their fees be paid up front

A good many credit repair scams ask for their fees in full before any services have been rendered.

This is understandable, because they know that sooner or later you will discover that that they can't deliver as fast as they had promised. And at that point, you would refuse to pay.

It's entirely possible to avoid credit repair scams. Just don't forget that no matter how desperate you become, look out for the red flags!

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Saturday, August 15, 2009

Credit Repair Scams: A Warning For Consumers

The Ethical Credit Repair Alliance (ECRA) was founded by CEO Ben Hanania, to promote professionalism and regulation in the credit repair industry.

Visit this press release to learn more about the dangers of credit repair scams!

Tuesday, August 04, 2009

Procuring a Trustworthy Credit Repair Business

You find yourself in major trouble with your credit report and you're seeking a legitimate credit repair business provider that can help you out. But how do you find the right one?

Everywhere on the Internet you'll find advertisements that promise fast, cheap, reliable ways to raise your credit score. Who do you choose, especially considering there is such a lot of talk about fraudulent credit repair companies whose only concern is relieving you of your money, by exploiting your hapless condition.

Happily, there are ways to identify which companies are honest and which are not. There are five points to consider in reaching a decision.

1. A Trustworthy Credit Repair Business Won't Charge a Fee Before Talking With You
Counseling is one of the critical inputs that a credit repair provider offers. A reputed and qualitative credit repair agency would ensure that you are counseled about your options before they accept you as a client. They would help you understand about credit reports, how you can improve your credit score, how to avoid falling into bad credit traps and so on. In other words, they will become your mentors, not just service providers.

2. A Legitimate Credit Repair Business Is Completely Open About Their Fees
There are no hidden costs with a legitimate business. They will state upfront how much is required for what type of services, and you know exactly where you stand with them. The shady ones advertise extremely low costs but then socks it to you with hidden fees.
A lot of times they use unfair and illegal means to show sudden improvement in your credit report, which to someone in dire financial pain can seem like a miracle! Walk away from such traps as they will make your problems worse than ever.

3. A Legitimate Credit Repair Business Will Have Outstanding Reviews On The Net
Run a search with the name of the credit repair company you are considering and the words "scam" or "fraud". What results do you get? Do you get positive reports or is the information you find less than encouraging?

Go through these reviews or feedback and make your decision accordingly. If this company uses shady means to repair bad credit or improve a credit score, you will definitely get an inkling about it on the Net.

4. A Trustworthy Credit Repair Business Will "Under-Promise" And "Over-Deliver"

You will find the tall promises and impossible results advertised exclusively by scam artists. The legitimate ones do not oversell any drastic tactics or results, simply because these are not possible within the legal framework. If you expect your credit rating to jump a few hundred points overnight, know that this is just not possible. Eliminating bad credit, building positive feedback, and improving your credit score is hard and time-taking work.

5. A Legitimate Credit Repair Business Will Be Affiliated With a Regulatory Organization

This is a very critical point that never fails to separate the false from the right business agencies. A legitimate agency will be affiliated with reputed national and international level regulatory bodies. This means that whether they repair bad credit or help raising your credit score, they will do so according to a pre-set, legal and ethical code of conduct.