How to Steer Clear of Credit Repair Scams

Many people find out too late - at the exact moment when they need to rely on their credit - that their score falls short of what a lender would like to see. When you're desperate for a quick fix is when scam artists present you with a credit repair claim that looks too good to be true.

One of the more common credit repair scams to look out for is "The Inside Job". The perpetrators of this scam will promise you that they can easily repair your credit with the help of a close friend or associate that works within one of the major credit reporting bureaus. This is just as ridiculous a claim as it sounds; don't be swayed into parting with your hard-earned money by chasing such an absurd scenario.

The only time anything can get fixed on a credit report is when something is verified to be incorrect. But those you can take care of yourself. All you have to do is report it and if it's determined that it truly is an error, it will get fixed.

Of course, there are companies that can do this for you, but why would you spend the money? You can simply do it yourself. And of course, you're not guaranteed that someone who's promising to repair your credit report will actually do so. Most likely, they're just out to take your money, or even worse.

Another common scam is when a company tells you that they know how to convince the bureaus that you don't really owe a particular debt. The truth is, if you really owe the debt, then there's nothing that can be done.

If a company tells you they can remove it, they're wrong and they're just out to get your money. Even if they try to make an attempt at resolution, they're not going to be successful and you're going to be out what you've paid them anyway. And the debt will stay on your record until it ages off or you pay it.

Yet another common credit repair scam is that a company will say they can change your whole credit file into one with good standing, if your current one is poor. However, again, this isn't going to happen. If your credit report is poor and the debts on there are valid and legitimate, the only fix for this is that you actually begin to show that you are responsible, and you begin to pay your debts and bills on time.

Potentially the most financially damaging of the common scams, another type of swindle begins with an offer to help repair your credit that quickly becomes an enticement to accept a loan to pay off your debts. These loans typically come with disastrous interest rates attached and huge penalties for late payments. Never enter into a loan agreement under the auspices of a credit repair solution.

Devious and more annoying than destructive, some credit repair scams will urge you to call a special (1-900) telephone number for more information and detailed instructions on how to repair your credit. (1-900) telephone numbers levy steep per-minute charges, and the information you are provided is generally incorrect or simply drawn from free public sources.

There are companies out there that will fix incorrect items on your credit reports, but it's best to try to fix those on your own. All you have to do is report the error via letter or email and the agency will investigate and correct your report for you.

Article Source: http://www.yourarticle.info

Paul Cameron is editor of Personal Finance at i-KnowHow | Information for Life, where you'll also find ideas and tips for hobbies, home and garden, technology, family and much more.

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